City of Cincinnati, Ohio

Single Audit Reports

Year Ended December 31, 2009 TABLE OF CONTENTS

Schedule of Expenditures of Federal Awards ...... 1 – 3

Report on Internal Control Over Financial Reporting on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ...... 4 – 5

Report on Compliance with Requirements Applicable to each Major Program and Internal Control Over Compliance in Accordance with OMB Circular A-133...... 6 – 7

Schedule of Findings and Questioned Costs...... 8 – 9 CITY OF CINCINNATI, OHIO Schedule of Expenditures of Federal Awards (Non-GAAP Budgetary Basis) For the year ended December 31, 2009 (Amounts in thousands)

Grant and Contract Contributions and other Grantor/Program Title Fund CFDA # Grant # Agency Revenue Received Revenue CFS Expenditures

1 U.S. Department of Agriculture * Passed through Ohio Department of Health * Hamilton County WIC Program 391 10.557 31-2-001-1-WA-0109 NAM Health $ 2,227 $ (2,254) * Hamilton County WIC Program 391 10.557 31-2-001-1-WA-0310 NAM Health 752 (596) Total for CFDA No. 10.557 2,979 0 (2,850)

U.S. Department of Agriculture Passed through Ohio Department of Education * CACFP- Child & Adult Care Food Program 324 10.558 009070 NAR Recreation 107 0 (89) Total for CFDA No. 10.558 107 0 (89)

TOTAL DEPARTMENT OF AGRICULTURE 3,086 (2,939)

1 U.S. Department of Health & Human Services * Passed through Ohio Department of Community Dev. * Child Care& Development Block Grant 323 93.575 APR Recreation 17 (17) Total for CFDA No. 93.575 17 0 (17)

1 U.S. Department of Health & Human Services * Passed through Ohio Department of Health * Social Services Block Grant 323 93.667 APR Recreation 17 (17) Total for CFDA No. 93.667 17 0 (17)

2 U.S. Department of Health and Human Services * Passed through Council on Aging of Southwestern Ohio * Special Programs for the Aging Title III Part B 324 93.044 NAR Recreation 23 (23) (a.) Total for CFDA No. 93.044 23 0 (23)

* Special Programs for the Aging Title III Part C 324 93.045 NAR Recreation 241 15 (286) (a.) Total for CFDA No. 93.045 241 15 (286)

* Passed through YMCA of Greater Cincinnati * TANF - Child Care Services 323 93.558 APR Recreation 35 (35) Total for CFDA No. 93.558 35 0 (35)

* Passed through Ohio Department of Health * Regional Lead Poisoning Prevention 380 93.197 31-2-001-1-BE-07 NAM Health (28) * Regional Lead Poisoning Prevention 380 93.197 31-2-001-1-BE-08 NAM Health 74 * Regional Lead Poisoning Prevention 380 93.197 31-2-001-1-BE-09 NAM Health 36 (56) * Regional Lead Poisoning Prevention 380 93.197 31-2-001-1-LE-0310 NAM Health (15) Total for CFDA No. 93.197 111 0 (99)

* Passed through Neighborhood Health Care * Cincinnati Health Network 448 93.224 Contract #85-9623 NAM Health (2) * Cincinnati Health Network 448 93.224 Contract #95-9748 NAM Health 224 (226) * Cincinnati Health Network 446 93.224 Contract #85-9668 NAM Health 306 (197) * Cincinnati Health Network 446 93.224 Contract #95-9758 NAM Health 214 (253) Total for CFDA No. 93.224 743 0 (678)

* Passed through Ohio Department of Health * Immunization Action Plan Special 415 93.268 31-2-001-2-IM-0108 NAM Health (74) * Immunization Action Plan Special 415 93.268 31-2-001-2-IM-0209 NAM Health 358 (274) Total for CFDA No. 93.268 358 0 (348)

* Passed through Ohio Department of Health * Federal AIDS Prevention 378 93.940 31-2-001-2-AS-08 NAM Health (5) * Federal AIDS Prevention 378 93.940 31-2-001-2-HP-0108 NAM Health 14 (105) * Federal AIDS Prevention 378 93.940 31-2-001-2-HP-0209 NAM Health 763 (747) Total for CFDA No. 93.940 776 0 (858)

* STD Control Program 378 93.977 31-2-001-2-ST-0109 NAM Health 21 * STD Control Program 378 93.977 31-2-001-2-ST-0210 NAM Health 84 (84) Total for CFDA No. 93.977 105 0 (84)

STD/HIV Prevention Training Centers 379 93.978 R30/CCR516650-09 NAM Health (0) STD/HIV Prevention Training Centers 379 93.978 R30/CCR516650-09 NAM Health 419 (400) Total for CFDA No. 93.978 419 0 (401)

* Passed through Ohio Department of Health * Heart Health in Hamilton County 425 93.991 31-2-001-2-CH-0108 NAM Health (53) * Heart Health in Hamilton County 425 93.991 31-2-001-2-CH-0209 NAM Health 80 (61) Total for CFDA No. 93.991 80 0 (114)

* Passed through Ohio Department of Health Public Health Infrastructure 350 93.283 31-2-001-2-PI-0209 NAM Health 77 (91) * Public Health Emergency Preparedness 350 93.283 31-2-001-2-PH-0110 NAM Health 248 (20) * Environmental Public Health and Emergency Response 350 93.283 NAM Health 313 (313) Total for CFDA No. 93.283 639 0 (424)

TOTAL DEPARTMENT OF HEALTH AND HUMAN SERVICES 3,565 15 (3,383)

3 U.S.Department of Housing & Urban Development * Community Development Block Grant 304 14.218 B08-MC390003 NAC Comm Dev 9,039 (8,562) * Community Development Block Grant 304 14.218 B08-MC390003 NAC Comm Dev 3,020 2,623 (5,542) ARRA - Community Dev Block Grant Recovery 502 14.253 B-09-MY-39-0003 NAO Comm Dev 504 (508) * Community Development Block Grant 304 14.218 New CFDA Loans NAC Comm Dev 0 0 0 Total for CFDA No. 14.218 and 14.253 12,564 2,623 (14,611)

* Emergency Shelter Grant 445 14.231 S-08-MC-39-0003 NAO Comm Dev 109 (109) * Emergency Shelter Grant 445 14.231 S-09-MC-39-0003 NAO Comm Dev 502 (502) Total for CFDA No. 14.231 611 0 (611)

1 CITY OF CINCINNATI, OHIO Schedule of Expenditures of Federal Awards (Non-GAAP Budgetary Basis) For the year ended December 31, 2009 (Amounts in thousands)

Grant and Contract Contributions and other Grantor/Program Title Fund CFDA # Grant # Agency Revenue Received Revenue CFS Expenditures

* HOME-Shelter Plus Care 410 14.238 OH16C30-0001 NAO Comm Dev $ 73 $ (73) * HOME-Shelter Plus Care 410 14.238 OH16C40-0001 NAO Comm Dev 549 (549) * HOME-Shelter Plus Care 410 14.238 OH16C50-0001 NAO Comm Dev 231 (231) * HOME-Shelter Plus Care 410 14.238 OH16C70-0001 NAO Comm Dev 161 (161) * HOME-Shelter Plus Care 410 14.238 OH16C70-0022 NAO Comm Dev 1,311 (1,311) * HOME-Shelter Plus Care 410 14.238 OH0006C5E000800 NAO Comm Dev 27 (27) * HOME-Shelter Plus Care 410 14.238 OH0009C5E000801 NAO Comm Dev 1,916 (1,916) Total for CFDA No. 14.238 4,268 0 (4,268)

* HOME 411 14.239 M-00-MC-39-0213 NAC Comm Dev 0 9 (9) * HOME 411 14.239 M-04-MC-39-0213 NAC Comm Dev 41 (41) * HOME 411 14.239 M-05-MC-39-0213 NAC Comm Dev 1,555 (1,555) * HOME 411 14.239 M-08-MC-39-0213 NAC Comm Dev 164 11 (175) * HOME 411 14.239 M-09-MC-39-0213 NAC Comm Dev 279 (282) * HOME 411 14.239 M-97-MC-39-0213 NAC Comm Dev 1,225 157 (1,382) * HOME 411 14.239 Outstanding CFDA Loans NAC Comm Dev 0 (25,686) Total for CFDA No. 14.239 3,264 178 (29,130)

* Housing Opportunities For People With Aids 465 14.241 O-HH-08-F001 NAO Comm Dev 93 (93) * Housing Opportunities For People With Aids 465 14.241 O-HH-09-F001 NAO Comm Dev 449 (449) Total for CFDA No. 14.241 543 0 (543)

Empowerment Zone 324 14.244 NAR Recreation Empowerment Zone 386 14.244 EZ-99-04-0009 NAO Comm Dev 1,021 (1,560) Total for CFDA No. 14.244 1,021 0 (1,560)

FY06 HUD Grant 472 14.246 B-06-SP-OH-0779 NAS FIRE 59 (56) Total for CFDA No 14.246 59 0 (56)

ARRA - Neighborhood Stabilization Program 438 14.256 B08MN39003 NAO Comm Dev 764 136 (1,099) Total for CFDA No 34.002 764 136 (1,099)

ARRA - Homeless Prevention & Rapid Re-Hsg Prog 502 14.257 S-09-MY-39-0003 NAO Comm Dev 0 (278) Total for CFDA No 14.257 0 0 (278)

Lead Hazard Control Grant 381 14.900 OHLHB0360-07 NAM HEALTH 1,354 (1,366) Cincinnati Lead Abatement Program 387 14.900 OHLHD0187-08 NAO Comm Dev 46 (46) Total for CFDA No. 14.900 1,399 0 (1,411)

TOTAL DEPARTMENT OF HOUSING & URBAN DEVELOPMENT 24,493 2,937 (53,567)

4 U.S. Department of the Interior * Passed through Ohio Department of Natural Resources * ODNR-Hooked on Fishing 324 15.605 NAR Recreation 10 (10) * Take Me Fishing 324 15.605 NAR Recreation 5 (0) (d.) Total for CFDA No. 15.605 15 0 (10)

TOTAL DEPARTMENT OF THE INTERIOR 15 0 (10)

5 U.S. Department of Justice * Passed through Ohio Department of Youth Services Juvenile Accountability 368 16.540 2007-JB-015-A242 NAS Police 8 (1) Juvenile Accountability 368 16.540 2008-JB-015-A242 NAS Police 27 (8) Total for CFDA No. 16.540 35 0 (10)

* Passed through Ohio Office of Criminal Justice Services * VALU/SVAA 368 16.575 2009-SAGENE757 NAS Police 50 (49) Total for CFDA No. 16.575 50 0 (49)

* Passed through Ohio Office of Criminal Justice Services * Domestic Violence Advocacy 368 16.588 2007-WF-VA5-8583 NAS Police 13 (13) * Domestic Violence Advocacy 368 16.588 2008-WF-VA5-8583 NAS Police 39 (35) Total for CFDA No. 16.588 52 0 (48)

* Passed through Ohio Office of Criminal Justice Services * Project Safe Neighborhood 368 16.609 2003-PS-PSN-300 NAS Police 21 (21) Total for CFDA No. 16.609 21 0 (21)

2008 COPS Technology 368 16.710 2008-CK-WX-0558 NAS Police 68 (259) 2008 Earmark - RMS 368 16.710 2008-CK-WX-0619 NAS Police 217 (215) ARRA - 2009 COPS Hiring Recovery Project 502 16.710 2009-RJ-WX-0069 NAO Police 1,065 (1,065) Total for CFDA No. 16.710 1,350 0 (1,539)

Justice Assistance Grant 368 16.738 2004-JG-A02-6652 NAS Police 35 (52) Justice Assistance Grant 361 16.738 2006-DJ-BX-0957 NAS Police (12) Justice Assistance Grant 375 16.738 2007-DJ-BX-1160 NAS Police 9 (41) Justice Assistance Grant 345 16.738 2008-DJ-BX-0307 NAS Police 0 3 0 Justice Assistance Grant 365 16.738 2009-DJ-BX-0669 NAS Police 669 0 (320) Total for CFDA No. 16.738 704 11 (425)

2008 Earmark-Cameras 368 16.753 2008-DD-BX-0175 NAS Police 779 0 (787) Total for CFDA No. 16.753 779 0 (787)

ARRA - 2009 JAG Recovery Act 501 16.804 2009-SB-B9-1187 NAS Police 2,993 0 (2,105) Total for CFDA No. 16.804 2,993 0 (2,105)

TOTAL DEPARTMENT OF JUSTICE 5,983 11 (4,984)

6 U.S. Department of Transportation FAA/ODOT Local Match '08 980 20.106 08-06 CP 980 259 0 (25) Total for CFDA No. 20.106 259 0 (25)

2 CITY OF CINCINNATI, OHIO Schedule of Expenditures of Federal Awards (Non-GAAP Budgetary Basis) For the year ended December 31, 2009 (Amounts in thousands)

Grant and Contract Contributions and other Grantor/Program Title Fund CFDA # Grant # Agency Revenue Received Revenue CFS Expenditures

* Passed through Ohio Department of Transportation Gilbert Ave Greenway 980 20.205 PID 78010 ODOT CP 980 $ 29 $ - $ (31) Columbia Pwy Access Management 980 20.205 PID 11895 ODOT CP 980 0 (1) Hamilton Ave. Windmere to Groesbeck 980 20.205 PID 24503 ODOT CP 980 16 0 (221) Eighth Street Viaduct 980 20.205 PID 77363 CP 980 8,110 (8,110) Zoo-Vine St. Pedestrianbridge 980 20.205 PID 77706 CP 980 193 0 (146) Mt. Adams Steps 980 20.205 PID 80757 CP 980 17 0 0 Sub-total for ODOT - CFDA No. 20.205 8,365 0 (8,508)

* Passed through Governor's Highway Safety Office * Law Enforcement Overtime Program 368 20.600 GG-2009-31-00193-00 NAS Police 82 (76) Law Enforcement Overtime Program 368 20.600 GG-2009-31-00229-00 NAS Police 5 (11) Law Enforcement Overtime Program 368 20.600 HVEO-2009-31-00217-00 NAS Police 71 (72) Law Enforcement Overtime Program 368 20.600 HVEO-2009-31-00300-00 NAS Police 3 0 (f.) Total for CFDA No. 20.600 162 0 (159)

TOTAL DEPARTMENT OF TRANSPORTATION 8,785 0 (8,691)

* Passed through Cinn Metropolitan Housing Authority * Neighborhood Housing 980 66.202 XP-96549101-0 CP 980 0 0 (1) Total for CFDA No .66.202 0 0 (1)

Brownfield Job Training 474 66.815 JT96546102 NAL Comm Dev 116 (116) Total for CFDA No .66.815 116 0 (116)

TOTAL ENVIRONMENTAL PROTECTION AGENCY 116 0 (116)

Park Infrastructure Rehab 980 15.919 39-CTY-1610-01-01 CP 980 0 (65) Total for CFDA No. 15.919 0 0 (65)

TOTAL NATIONAL PARK SERVICE 0 0 (65)

9 Department of Homeland Security * Passed through Hamilton County Emergency Mgt. Agency * Urban Areas Security Initiative 97.008 S03-UASI-31 NAS Fire (65) 65 * Urban Areas Security Initiative 97.008 S04-UASI-31-0546 NAS Fire (251) 251 * Urban Areas Security Initiative 97.008 S05-UASI-31-0297 NAS Fire (2) 2 * Urban Areas Security Initiative 476 97.008 S06-UASI-31-0236 NAS Fire 325 (326) * Urban Areas Security Initiative 476 97.008 S07-UASI NAS Fire 65 (41) Total for CFDA No . 97.008 72 0 (49)

9 Department of Homeland Security * Passed through Hamilton County Emergency Mgt. Agency

04SHSGP NAS Fire (53) (253) 05SHSGP NAS Fire 15 9 06SHSCP NAS Fire 0 0 (177) * Homeland Security Grant Program 97.073 08SHSCP - HM NAS Fire 27 2 (27) Total for CFDA No . 97.073 (11) 2 (448)

* Passed through Ohio Dept. of Public Safety * FEMA-Windstorm 479 97.036 FEMA 1805-DR-061-15000 NAO Finance 2,723 (65) Total for CFDA No . 97.036 2,723 0 (65)

FY08 AFG Grant 472 97.044 EMW-2008-F0-12072 NAS Fire 0 (9) Fire Prevention & Safety Grant 343 97.044 EMW-2006-FP-02745 NAS Fire 0 0 3 Total for CFDA No . 97.044 0 0 (5)

* Passed through Ohio Emergency Management Agency Metropolitan Medical Response System 454 97.071 S-06-MMRS6-31-0241 NAS Fire 7 (7) * Metropolitan Medical Response System 454 97.071 70-0560-0-1-999 NAS Fire 0 Total for CFDA No . 97.071 7 0 (7)

* Passed through Ohio Emergency Management Agency FY07 UASI 476 97.067 0000006885 NAS Fire 50 (74) Metropolitan Medical Response System 454 97.067 0000007023 NAS Fire 57 (52) Total for CFDA No . 97.067 108 0 (127)

TOTAL DEPARTMENT OF HOMELAND SECURITY 2,898 2 (701)

Dept of Energy * ARRA -Energy Efficiency & Conservation Block Grant 502 81.128 DE-EE0000704 NAO EQ 29 (29) Total for CFDA No . 81.128 29 0 (29)

TOTAL DEPARTMENT OF ENERGY 29 0 (29)

TOTAL FEDERAL GRANTS & SUBSIDIES (Non-GAAP Basis) $ 48,970 $ 2,965 $ (74,486)

Less Amount Recognized as Contributed Capital (8,624) Less Accrual of Federal Grant & Subsidies at 12/31/08 (784) Plus Accrual of Federal Grant & Subsidies at 12/31/09 1,060 Less Huntington Meadows Repayment for 2009 (1,225)

Amount Recognized as Federal Grants & Subsidies (GAAP Basis) $ 39,397

* Indicates Federal monies passed through another agency to the City of Cincinnati. (a) Indicates an Aging Cluster

Total Community Development loans outstanding at December 31, 2009 totaled $35,076,329 under CFDA 14.218 and $25,685,593 under CFDA 14.239.

3 REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

To the Honorable Mayor and Members of City Council City of Cincinnati, Ohio:

We have audited the accompanying financial statements of the governmental activities, the business- type activities, each major fund, and the aggregate remaining fund information of the City of Cincinnati, Ohio (the “City”) as of and for the year ended December 31, 2009, which collectively comprise the City’s basic financial statements and have issued our report thereon dated June 30, 2010. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.

Internal Control Over Financial Reporting

In planning and performing our audit, we considered the City’s internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control over financial reporting.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis.

Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above.

105 east fourth street, ste. 1500 cincinnati, oh 45202

www.cshco.com p. 513.241.3111 f. 513.241.1212

cincinnati | columbus | dayton | middletown | springfield Compliance And Other Matters

As part of obtaining reasonable assurance about whether the City’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

We noted certain matters that we reported to management of the City in a separate letter dated June 30, 2010.

This report is intended solely for the information and use of the Mayor and Members of City Council, the City’s management, others within the entity, and federal awarding agencies and pass-through entities, and is not intended to be and should not be used by anyone other than these specified parties.

Cincinnati, Ohio June 30, 2010

5 REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133

To the Honorable Mayor and Members of City Council City of Cincinnati, Ohio:

Compliance

We have audited the compliance of the City of Cincinnati, Ohio (the “City”) with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each of its major federal programs for the year ended December 31, 2009. The City’s major federal programs are identified in the summary of auditors’ results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major federal programs is the responsibility of the City’s management. Our responsibility is to express an opinion on the City’s compliance based on our audit.

We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of the City’s compliance with those requirements.

In our opinion, the City complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs for the year ended December 31, 2009.

105 east fourth street, ste. 1500 cincinnati, oh 45202

www.cshco.com p. 513.241.3111 f. 513.241.1212

cincinnati | columbus | dayton | middletown | springfield Internal Control Over Compliance

The management of the City is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, and contracts, and grants applicable to federal programs. In planning and performing our audit, we considered the City’s internal control over compliance with the requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control over compliance.

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis.

Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above.

Schedule of Expenditures of Federal Awards

We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of and for the year ended December 31, 2009, and have issued our report thereon dated June 30, 2010. Our audit was performed for the purpose of forming our opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by OMB Circular A-133 and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole.

Cincinnati, Ohio June 30, 2010

7 CITY OF CINCINNATI, OHIO Schedule of Findings and Questioned Costs Year Ended December 31, 2009

Section I – Summary of Auditors’ Results

Financial Statements

Type of auditors’ report issued: Unqualified Internal control over financial reporting:  Material weakness(es) identified? None  Significant deficiency(ies) identified not considered to be material weaknesses? None

Noncompliance material to the financial statements noted? None

Federal Awards

Internal control over major programs:  Material weakness(es) identified? None  Significant deficiency(ies) identified not considered to be material weaknesses? None

Type of auditors’ report issued on compliance for major programs: Unqualified

Any audit findings that are required to be reported in accordance with 510(a) of Circular A-133? None

Identification of major programs:

 CFDA 10.557 – Special Supplemental Nutrition Program for Women, Infants, and Children  CDBG Entitlement Cluster: CFDA 14.218 – Community Development Grants/Entitlement Grants CFDA 14.253 – Community Development Block Grant/Entitlement Grants - ARRA  CFDA 14.238 – Shelter Plus Care  CFDA 14.239 – HOME Investment Partnerships Program  CFDA 14.244 – Empowerment Zone  CFDA 14.900 – Lead-Based Paint Hazard Control in Privately-Owned Housing  CFDA 16.710 – Public Safety Partnership and Community Policing Grants - ARRA  CFDA 16.804 – Edward Bryne Memorial Justice Assistance Grant Program - ARRA  CFDA 20.205 – Highway Planning & Construction

Dollar threshold to distinguish between Type A and Type B Programs: $1,360,622

Auditee qualified as low-risk auditee? yes

8 Section II – Financial Statement Findings

None

Section III – Federal Award Findings and Questioned Costs

None

Section IV – Summary of Prior Audit Findings and Questioned Costs

Finding 2008-1 – Audit Adjustment

During the course of our prior year audit, we identified a misstatement in the financial statements for the year under audit that were not initially identified by the City’s internal control over financial reporting. State agencies made payments to vendors of approximately $10.6 million on behalf of the City. The City did not initially record the corresponding intergovernmental revenue and expenditure in the Capital Projects Fund.

Current Year Status: No audit adjustments were noted in the current year.

Comprehensive Annual Financial Report For the year ended December 31, 2009

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2 Comprehensive Annual Financial Report For the year ended December 31, 2009

Interim Director of Finance: Kathleen A. Creager, CPA

Assistant Director of Finance: Karen Alder

Finance Manager: Christopher A. Bigham, CPA

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Introductory

Section

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6 CITY OF CINCINNATI, OHIO COMPREHENSIVE ANNUAL FINANCIAL REPORT For the year ended December 31, 2009

TABLE OF CONTENTS

INTRODUCTORY SECTION Page

Letter of Transmittal ...... 11 Certificate of Achievement...... 17 Organization Chart ...... 19 Principal City Officials ...... 21

FINANCIAL SECTION Page

Report of Independent Auditors ...... 25

Management’s Discussion and Analysis ...... 27

BASIC FINANCIAL STATEMENTS:

Basic Financial Statements:

Government-wide Financial Statements: Statement of Net Assets...... 43 Statement of Activities...... 45

Fund Financial Statements: Balance Sheet – Governmental Funds ...... 46 Reconciliation of the Balance Sheet to the Statement of Net Assets – Governmental Funds ...... 47 Statement of Revenue, Expenditures and Changes in Fund Balances - Governmental Funds ...... 48 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities – Governmental Funds ...... 49 Statement of Net Assets – Proprietary Funds ...... 51 Statement of Revenues, Expenses, and Changes in Fund Net Assets – Proprietary Funds...... 53 Statement of Cash Flows – Proprietary Funds ...... 54 Statement of Fiduciary Net Assets – Fiduciary Funds ...... 56 Statement of Changes in Fiduciary Net Assets – Fiduciary Funds ...... 57

Notes to Financial Statements...... 59

Required Supplementary Information

Schedule of Funding Progress – Pension Plan...... 117 Schedule of Funding Progress – Healthcare Plan...... 117 Schedule of Employers’ Contributions – Pension Plan...... 117 Schedule of Employers’ Contributions – Healthcare Plan ...... 117 Budgetary Comparison Schedule – General Fund...... 118 Note to the Required Supplementary Information...... 119

7 TABLE OF CONTENTS (Continued)

FINANCIAL SECTION (Continued) Page

Supplementary Information

Major Governmental Fund:

Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget (Non-GAAP Budgetary Basis) – and Actual General Fund...... 125 Statement of Revenue, Expenditures, and Changes in Fund Balance...... 131 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget (Non-GAAP Budgetary Basis) – and Actual Capital Projects Fund...... 138 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget (Non-GAAP Budgetary Basis) – and Actual Debt Service Fund ...... 141

Nonmajor Governmental Funds...... 143 Combining Balance Sheet – Nonmajor Governmental Funds ...... 145 Combining Statement of Revenue, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds ...... 148 Schedules of Revenue, Expenditures and Changes in Fund Balance – Budget (Non-GAAP Budgetary Basis) and Actual

Health Services Fund...... 151 Street Construction, Maintenance and Repair Fund ...... 152 Parking Meter Fund ...... 153 Cable T.V. Fund ...... 154 Income Tax Infrastructure Fund ...... 155 Income Tax Transit Fund ...... 158 Motor Vehicle License Fund ...... 159 Special Recreation Fund ...... 160 Recreation Grants Fund...... 162 Parks Fund ...... 163 Safety Fund ...... 164 Health Grants Fund ...... 165 Cincinnati Blue Ash Airport Fund ...... 166 Community Development Fund ...... 167 Department of Labor Grant Fund ...... 170 Other Grants and Special Revenues Fund ...... 171 Bettman Nature Center ...... 175 Groesbeck Endowment Fund ...... 176 Schmidlapp Park Music Fund ...... 177 Joanna Peters Bequest ...... 178 The W.M. Music Endowment Fund ...... 179 Crosley Field Trust ...... 180 Kroger Trust ...... 181 Yeatman’s Cove Park Trust ...... 182 Park Board Fund ...... 183

Nonmajor Enterprise Funds ...... 185 Combining Statement of Net Assets...... 187 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets...... 188 Combining Statement of Cash Flows ...... 189

8 TABLE OF CONTENTS (Continued)

FINANCIAL SECTION (Continued) Page

Internal Service Funds...... 191 Combining Statement of Net Assets...... 193 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets...... 195 Combining Statement of Cash Flows ...... 196

Fiduciary Funds – Trust and Agency Funds ...... 199 Statement of Plan Net Assets – Pension Trust Fund...... 201 Combining Statement of Changes in Plan Net Assets – Pension Trust Fund ...... 202 Combining Statement of Fiduciary Assets and Liabilities – Agency Funds ...... 203 Combining Statement of Changes in Assets and Liabilities - Agency Funds ...... 204

Capital Assets Used in the Operation of Governmental Funds...... 207 Schedule by Source...... 209 Schedule by Function and Activity...... 210 Schedule of Changes by Function and Activity...... 211

Schedules:

Outstanding Bonds and Notes ...... 215 Schedule of Annual Debt Service ...... 216 Schedule of Expenditures of Federal Awards ...... 217 Infrastructure Income Tax ...... 220

STATISTICAL SECTION Page

Financial Trends Schedule of Net Assets by Category ...... 225 Schedule of Changes in Net Assets ...... 226 Fund Balances, Governmental Funds...... 228 Changes in Fund Balance, Governmental Funds...... 229 Program Revenue by Function/Program ...... 230 Total Revenue by Source, Governmental Funds...... 231 Tax Revenue by Source, Governmental Funds ...... 231 Revenue Capacity Income Tax Revenue Base and Collections ...... 232 Income Tax Revenues (GAAP and Non-GAAP)...... 233 Assessed Value and Estimated True Value ...... 234 Property Tax Rates - Direct and Overlapping Governments...... 234 Principal Property Taxpayers…...... 235 Property Tax Levies and Collections ...... 236 Water Works – Top Ten Retail Customers...... 237 Water Works – Historical and Projected Water System Pumpage...... 238 Water Works – Accounts Receivable...... 238 Debt Capacity Ratios of Outstanding Debt by Type ...... 239 Ratios of Net General Bonded Debt ...... 240 Direct and Overlapping Governmental Activities Debt...... 240 Legal Debt Margin Information...... 241

9 TABLE OF CONTENTS (Continued)

STATISTICAL SECTION Page

Debt Capacity Revenue Bonds Debt Service Coverage ...... 242 Water Works – Historical Financial Operations...... 243 Water Works – Projected Operating Results ...... 244 Water Works – Senior Bonds and Senior Subordinated Debt Service Requirements ...... 245 Demographic and Economic Information Population Statistics ...... 246 Ten Largest Employers ...... 247 Construction and Property Value ...... 248 Salaries of Principal Officials ...... 249 Surety Bond Coverage ...... 249 Annual Employment Average by Industry ...... 250 Operating Information Full-Time Equivalent Employees by Function/Program ...... 251 Operating Indicators by Function/Program...... 252 Capital Asset and Infrastructure Statistics by Function/Program ...... 253

City of Cincinnati

DEPARTMENT OF FINANCE SUITE 250, CITY HALL 801 PLUM STREET CINCINNATI OH 45202 PHONE (513) 352-3731 June 30, 2010 KATHLEEN A . CREAGER INTERIM FINANCE DIRECTOR

The Honorable Mayor, Members of City Council, and the Citizens of the City of Cincinnati, Ohio

We are pleased to submit the City of Cincinnati’s Comprehensive Annual Financial Report (CAFR) for the year ended December 31, 2009. State law requires that the City of Cincinnati annually publish a complete set of financial statements for the results of its fiscal operations, presented in conformity with generally accepted accounting principles (GAAP). This report is prepared by the Department of Finance, which is responsible for the accuracy of the data and the completeness and fairness of its presentation, including disclosures. We believe that the information presented is accurate in all material respects and reported in a manner designed to show the financial position and operating results of the City.

GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A) that is located on page 27. This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it.

The Administration believes that the City's internal control structure provides reasonable assurance that assets are safeguarded, transactions are recorded and reported appropriately, and policies are followed. The concept of reasonable assurance recognizes that the cost of a control procedure should not exceed the expected benefit.

An important element of the City's control structure is the ongoing program to promote control consciousness throughout the organization. The Administration's commitment to this program is emphasized through written policies and procedures, and a well-qualified financial staff.

The firm of Clark, Schaefer, Hackett and Co. was selected, by the Auditor of the State of Ohio, in November 2009 to perform the City's audit for the five years 2009 to 2013. Clark, Schaefer, Hackett and Co. has audited the accompanying financial statements. Their report is included herein.

A single audit is an organization-wide financial and compliance audit that is conducted in lieu of the traditional grant-by-grant multiple audits performed in the past. Federal law requires us to have this single audit of all City activities. We have remained in compliance with this requirement since its inception in 1985. Clark, Schaefer, Hackett and Co. conducted the single audit for the 2009 fiscal year.

11 Profile of the Government

Cincinnati was founded in 1788, chartered as a village in 1802, and incorporated as a City in 1819. It is located on the Ohio River in Southwestern Ohio near the junction of Ohio, Indiana and Kentucky. Voters approved major revisions to the City Charter in 1926 to provide for home rule and the council-manager form of government. The City’s form of government was modified in 2001 based on a charter amendment approved by the voters in 1999 to implement a strong Mayor form of government. The Mayor is chosen through a direct election and the nine- members of City Council are chosen in a separate at-large election.

The Mayor is elected to a four-year term and City Council members are elected to two-year terms. Term limits enacted in November 1993 limit members of City Council to four consecutive two-year terms and the Mayor to two consecutive four-year terms. The Mayor appoints the City Manager subject to prior approval of the City Council.

The City is the only governmental unit in the reporting entity; it has no component units. In determining what constitutes the City reporting entity, the criteria established by the Governmental Accounting Standards Board were used. The City is not financially accountable for any potential component units. Hamilton County and the Cincinnati City School District are separate governmental jurisdictions that overlap the City's boundaries. These entities are not included in the City's financial reports.

An annual operating budget is adopted each fiscal year for the General Fund and several Special Revenue Funds which operate on an annual budget. Budgetary data is presented for these funds as well as the Capital Projects Fund, Debt Service Fund and other Special Revenue Funds which are mostly grants. For each budgeted expenditure classification, the level of appropriation control, which may not be exceeded, is: personal service, non-personal service, capital outlay, and debt service. Any revisions that alter the appropriation control classification of any division within a City department must be approved by the City Council. Encumbrances do not lapse at year-end and are included as expenditures in the current year budget (Non-GAAP Budgetary Basis).

The City provides the full range of municipal services including police and fire protection, parks, recreation, public services (highways, streets, and waste collection), health and human services, culture, public improvements, planning and zoning, general administrative, water and sewer services.

Information Useful in Assessing the Government’s Economic Condition

Local Economy

Forty-three percent of the nation's population, 41% of the nation's purchasing power, 44% of the nation's manufacturing establishments, and 54% of the nation's value added by manufacturing are located within 600 miles of the City. The City's diverse economic base has been and continues to be a source of financial stability for the City. Among its prominent manufacturing groups are transportation equipment, which includes aircraft engines and auto parts; food and kindred products; metalworking and general industrial machinery; chemicals; fabricated metal products; printing and publishing.

According to the Greater Cincinnati Chamber of Commerce in its Economic Outlook 2010, the economy bottomed out in August and September in 2009. Rising unemployment in the first half of 2010 will mean a slow recovery as job growth isn’t expected to be positive until 2011. Regional unemployment is higher than nationally and migration has slowed resulting in negative population gains. The current recession is near the end and only modest growth is expected in 2010.

During the past five years, the unemployment rate in the Cincinnati MSA rose significantly from an initial lowof 5.4% (2005) to a high of 9.9% (2009). Regional job growth is expected to increase by only .75% by the end of 2010. The overall economic slowdown will continue to affect job growth and unemployment throughout 2010.

12 Cincinnati’s keys to successful recovery are in its ability to attract and maintain business and to reduce impact of loss of population and jobs to growing suburban areas.

Per the U.S. 2000 Census the City of Cincinnati’s population was 331,290. The 2009 updated population estimates made by the Census Bureau has the Cincinnati population at 332,458.

Long Term Financial Planning

City Council established standards for a minimum working capital reserve account in 1984 to assure a strong financial position and to protect Cincinnati's general obligation bond rating during periods of fiscal stress. The policy called for achievement of a minimum reserve level, for emergency needs of a catastrophic nature, of no less than 5% or more than 8% of general operating revenues by December 31, 1986. The targeted year-end reserve level was achieved in January of each year 1985 through 2009. The target reserve of $26 million (7.7% of 2009 estimated revenues) has already been achieved. In 2010, $7 million of the working capital reserve fund was used to balance the general fund budget.

Actual Non-GAAP General Fund expenditures/encumbrances in 2009 were $356.3 million which is a $9.6 million decrease compared with 2008 expenditure/encumbrances of $365.9 million. Actual Non-GAAP revenue in 2009 of $343.3 million was less than 2008 actual revenues of $360.7 million. The original 2009 revenue estimate of $365 million was more than the actual revenue by $21.7 million.

Standard and Poor’s rates the City’s general obligation bonds “AA+”, the second highest rating. The City’s bond rating by Moody's is Aa1", the second highest rating. The ratings reflect the City’s strong financial management and healthy local economy.

Relevant Financial Policies

Cash temporarily idle during the year was invested in Certificates of Deposit, obligations of the U.S. Treasury, and the State Treasurer’s investment pool. The City has an investment committee that meets regularly to review investment policies and procedures. Beginning in March 2003, separate portfolios were created for general investments and bond investments in order to track specific interest earned on bond proceeds.

The City’s Investment Policy, which was approved by the Mayor and City Council, is to minimize credit and market risks while maintaining a competitive yield on its portfolio. Accordingly, deposits are either insured by federal depository insurance or collateralized. The investments held by the City at December 31, 2009 were either backed by the full faith and credit of the U.S. Government or were investments with a credit rating of A-/A3 and above. The Investment Policy uses a laddered approach to schedule investment maturities whose weighted average maturity of the general investment portfolio is not to exceed two years. As of December 31, 2009, the weighted average maturity was 678.46 days. The Investment Policy also identifies a benchmark that is used to monitor the performance of the investment portfolio. During 2009, the benchmark ranged from 1.25% to 1.75% and the rate of return for general investments ranged from 2.87% to 3.56%. The rate of return on general investments was 2.52% in 2009 compared to 4.20% for all investments in 2008.

The City maintains a comprehensive all-risk property insurance program through a commercial carrier, covering approximately $1 billion in property values. The program contains a $100,000 deductible, provides 100% replacement cost of property and has a maximum limit of $100 million for earthquake damage and $100 million for flood damage.

The City of Cincinnati Retirement System’s (CRS) net plan assets increased from $1.82 billion as of December 31, 2008 to $1.99 billion as of December 31, 2009. The increase of $176 thousand was due to the fourth quarter market conditions in 2009. (See Pension Trust Fund financial statements on pages 56 and 57 and footnote 21.)

13 The Cincinnati Retirement System’s actuary reported the funding progress of the plan as of December 31, 2009 improved. The funding ratio at year-end 2009 was 76.7% up from 71.2% year-end 2008. The increase in the funding ratio was due primarily to a change in the value of plan net assets. In 2009, the City Council changed retiree health care so that retirees are required to pay a portion of their health care costs. The member contribution rates will also increase by .5% per year until 2013 when the rate will reach 9%.

Major Initiatives

In 2009, the City continued to improve customer service throughout city government and promote revitalization of neighborhoods, downtown, and the riverfront area. Major initiatives, accomplishments and positive changes were made in the following areas and are of particular interest.

In November 2007, the City of Cincinnati and Hamilton County approved a series of agreements to develop the Banks on the city's central riverfront. This vibrant riverfront development will include a variety of residential options, entertainment venues including restaurants and bars, riverfront offices and hospitality spaces, and an expansive green 40-acre riverfront park. This first of its kind project in Cincinnati will benefit the entire Greater Cincinnati region. In addition to creating a destination where people can live, work, and play, the Banks will be a catalyst for regional economic growth. It will drive more than $600 million in private investment to our riverfront, provide a place to live for more than 3,000 residents and create hundreds of jobs during construction alone.

The first phase, which has already begun, will include infrastructure improvements, parking garages, commercial and retail spaces. In 2009, the City received $23.2 million in federal stimulus funding that will go towards the funding of Phase II. The Phase I public infrastructure and garage is expected to be complete bythe end of 2010.

Queen City Square Tower, the second office building in this complex was commenced construction in June, 2008. The building includes 800,000 square feet of Class A office space, 25,000 square feet of street level retail space and a 1,700 space parking garage. The City pledged TIF revenues for this project.

The City is embarking on a $128 million Streetcar project that will run through downtown, Over-the-Rhine and the University area, thereby connecting the major employment centers of the City. Funding will be a combination of City, Private and Federal funding. The City has chosen Cincinnati Streetcar Development Partners, LLC, a project specific professional partnership that includes the disciplines of program management, planning, finance and design. They will be charged with designing, building, operating and maintaining the streetcar project. The City is in process of securing federal funding for this important project and expects construction to begin in 2010.

Tax Incentive Districts

Ohio cities may now create Tax Incentive Districts up to 300 acres in size. In the past, the City's TIF authority was limited to specific projects. This change provides Cincinnati with a new tool to stimulate development and investment in depressed portions of the community. Under the new legislation, eleven areas of Cincinnati were approved as Tax Incentive Districts by Cincinnati's City Council in December 2002 and an additional nine TIF districts were approved in December 2005.

A $24 million mixed-use construction project commenced construction in summer 2009 at the corner of Vine Street and Martin Luther King Jr. Drive in Corryville, across from the University of Cincinnati. When completed, the project will be home to an 80,000 square foot, 132 room Hampton Inn and Suites Hotel, a 219 car public parking garage, and three retail spaces. Approximately 400 jobs and $24 million of new construction will result from this project, which is expected to be complete by the end of 2010.

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18 Citizens of Cincinnati

City Contractual Boards Mayor & City Council Boards and Commissions

Office of Budget & Evaluation Economic Development Division Cincinnati Human Relations Committee Office of Communications Citizen Complaint Authority (CCA) City Manager Office of Environmental Quality Southwest Ohio Regional Board of Health Transit Authority (SORTA) Fire Department Public Services Department Park Board

Recreation Commission Fleet Services City Planning Commission

19 Police Department Law Department

Human Resources Department Community Development Department

Transportation & Engineering Department Finance Department

Regional Computer Center (RCC) Greater Cincinnati Water Works

Metropolitan Sewer District Enterprise Services

Duke Energy Parking Facilities

Planning & Buildings Department

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20 CITY OF CINCINNATI, OHIO

Principal City Officials

CITY COUNCIL

Mark Mallory, Mayor Second term

Roxanne Qualls, Vice Mayor, Second term Y. Laketa Cole, Fourth term Chris Monzel, Fourth term Jeff Berding, Third term Leslie Ghiz, Third term Cecil Thomas, Third term Chris Bortz, Third term Charles Winburn, First term Laure Quinlivan, First Term

CITY MANAGER

Milton Dohoney, Jr.

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Financial

Section

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INDEPENDENT AUDITORS’ REPORT

To the Honorable Mayor and Members of the City Council City of Cincinnati, Ohio:

We have audited the accompanying financial statements of the governmental activities, the business- type activities, each major fund, and the aggregate remaining fund information of the City of Cincinnati, Ohio as of and for the year ended December 31, 2009, which collectively comprise the City of Cincinnati, Ohio’s basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City of Cincinnati, Ohio’s management. Our responsibility is to express opinions on the financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the government activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Cincinnati, Ohio as of December 31, 2009, and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated June 30, 2010 on our consideration of the City of Cincinnati, Ohio’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit.

105 east fourth street, ste. 1500 cincinnati, oh 45202

www.cshco.com p. 513.241.3111 f. 513.241.1212 25 cincinnati | columbus | dayton | middletown | springfield The management’s discussion and analysis on pages 27 through 39, and the pension and other postemployment benefits information and budgetary information on pages 117 through 119 are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it.

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Cincinnati, Ohio’s basic financial statements. The introductory section, combining and individual nonmajor fund financial statements and schedules, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements and schedules on pages 125 through 216 have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them.

Cincinnati, Ohio June 30, 2010

26 City of Cincinnati Management’s Discussion and Analysis

As management of the City of Cincinnati (the City), we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended December 31, 2009. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on pages 11 - 15 of this report. The government-wide financial statements are presented on a GAAP basis; that is, they reflect accrual basis of accounting. The GAAP fund financial statements will differ from those presented on a budgetary basis.

Financial Highlights

• The assets of the City, including all Governmental and Business-type activities, exceeded its liabilities at the close of the most recent fiscal year by $1.7 billion (net assets). Of this amount, $157.8 million is considered unrestricted. The unrestricted net assets of the City’s governmental activities have a balance of $60.6 million. The unrestricted net assets of the City’s business type activities are $97.2 million and may be used to meet the on-going obligations of the City’s parking, convention center, stormwater, aviation and golf business-type activities. Unrestricted net assets do not include assets with externally imposed restrictions or restrictions imposed by law. • The City’s total net assets increased $.6 million in 2009. Net assets of the governmental activities decreased by $4 million which represents a .5% decrease from the 2008 balance. Net assets of business-type activities increased $4.6 million or .5% increase from 2008. Governmental activities investment in capital assets, net of related debt increased $28.8 million. Governmental activities restricted net assets decreased $29 million. Business-type activities investment in capital assets, net of related debt decreased $1.6 million. Business-type activities restricted net assets increased by $4.5 million. • As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $424.9 million, a decrease of $278,000 in comparison with the prior year. On a combined basis approximately $26.5 million is considered nonspendable, $243.9 million is restricted for specific purposes, $28.6 has been committed by council and $92.2 has been assigned to specific purposes by management. • GASB 54 was implemented in 2009 and the Working Capital Reserve Fund, the city’s stabilization fund, was restated from Capital Projects to General Fund unassigned fund balance. At the end of the current fiscal year, the committed fund balance of the general fund was $12.9 million, while total fund balance reached $90 million, 26% of total general fund expenditures. $5.8 million is considered nonspendable. There was a $2 million decrease in general fund balance for the year ended December 31, 2009. • The non major governmental funds have an unassigned fund balance of -$1.6 which is due to the timing of CDBG and HOME reimbursable grants. • The City’s total debt service for governmental activities increased by $35 million (7.6%) during the current fiscal year.

Overview of the Financial Statements

The discussion and analysis are intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves.

Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business. The government-wide financial statements can be found on pages 43 to 45 of this report.

The statement of net assets presents information on all of the City’s assets and liabilities, with the difference between

27 the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.

The statement of activities presents information showing how the City’s net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows. Thus revenue and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes, and earned but unused vacation leave).

Both of the government-wide financial statements (statement of net assets and statement of activities) distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, economic development, community development, parks and recreation, public safety, transportation and engineering, enterprise services, public services, and public health. The business-type activities of the City include the Water Works, Parking Facilities, Convention Center, General Aviation, Municipal Golf, and Stormwater Management Funds.

Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements. The basic governmental fund financial statements can be found on pages 46 to 50 of this report.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the City’s near term financing decisions. Both the governmental funds balance sheet and the governmental funds statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The City maintains 28 individual governmental funds. Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances for the general fund, the capital projects fund, and the debt service fund, all of which are considered to be major funds. Data from the other 25 funds are combined into a single aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements found elsewhere in this report.

The City adopts an annual appropriated budget for its General Fund. A budgetary comparison statement has been provided for the General Fund to demonstrate compliance with this budget.

Proprietary funds. The City maintains two different types of proprietary funds - enterprise and internal service. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its water works, parking facilities, convention center, municipal airport, municipal golf courses and stormwater management system. Internal service funds are an accounting device to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds for its printing services and general stores operation, fleet services, property management function, self-insurance medical fund, workers’ compensation fund and regional computer center. Because all of these services predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements. The basic proprietary fund financial statements

28 can be found on pages 51 to 55 of this report.

Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Water Works Fund which is considered to be a major fund of the City. The other enterprise funds are combined into a single, aggregated presentation in the proprietary fund financial statements. All internal service funds are also combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the other enterprise funds and internal service funds are provided in the form of combining statements found elsewhere in this report.

Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. The City uses fiduciary funds to account for pension, trust and agency funds. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds.

The basic fiduciary fund financial statements can be found on pages 56 and 57 of this report.

Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 59 to 114 of this report.

Other Information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the funding progress of the City’s Pension and Health Care Plans, Employer Contributions to the City’s Pension and Health Care Plans and the budgetary comparison of the City’s General Fund. Required supplementary information can be found on pages 117 to 119 of this report.

The combining statements referred to earlier in connection with nonmajor governmental funds and internal service funds are presented immediately following the required supplementary information. Combining and individual fund statements and schedules can be found on pages 125 to 205 of this report.

CITY OF CINCINNATI’S Net Assets (AMOUNTS IN THOUSANDS) Governmental Business-type Total Activities Activities 2009 2008 2009 2008 2009 2008 Current and other assets $ 677,004 $ 673,796 $ 250,533 $ 185,135 $ 927,537 $ 858,931 Capital assets 1,017,399 963,801 1,110,251 1,082,568 2,127,650 2,046,369 Total Assets 1,694,403 1,637,597 1,360,784 1,267,703 3,055,187 2,905,300

Long-term liabilities outstanding 578,300 523,191 445,737 360,542 1,024,037 883,733 Other liabilities 247,075 241,337 64,525 61,259 311,600 302,596 Total liabilities 825,375 764,528 510,262 421,801 1,335,637 1,186,329

Net assets: Invested in capital assets, net of Related debt 674,690 645,883 705,909 707,549 1,380,599 1,353,432 Restricted 133,750 162,774 47,438 42,929 181,188 205,703 Unrestricted 60,588 64,412 97,175 95,424 157,763 159,836 Total net assets $ 869,028 $ 873,069 $ 850,522 $ 845,902 $ 1,719,550 $ 1,718,971

29 Government-wide Financial Analysis

As noted earlier, net assets may serve over time as a useful indicator of a government’s financial position. In the case of the City, assets exceeded liabilities by $1.72 billion at the close of the most recent fiscal year.

The largest portion of the City’s net assets $1.4 billion (80.3%) reflects its investment in capital assets (e.g. land, construction in progress, buildings, machinery, equipment, and infrastructure); less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to its citizens; consequently, these assets are not available for spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, because the capital assets themselves cannot be used to liquidate these liabilities.

An additional portion of the City’s net assets $181.2 million (10.5%) represents resources that are subject to external restrictions on how they may be used. The remaining balance $157.8 million (9.2%) represents unrestricted net assets and may be used to meet the government’s ongoing obligations to citizens and creditors. It is important to note that although the total unrestricted net assets is $157.8 million; the unrestricted net assets of the City’s business-type activities ($97.2 million) may not be used to fund governmental activities.

At the end of the current fiscal year, the City is able to report positive balances in all three categories of net assets, both for the government as a whole, as well as for its separate governmental and business-type activities. The same held true for the prior fiscal year.

Overall, net assets of the City increased $.6 million in 2009. Net assets for governmental activities decreased $4 million, while net assets of business-type activities increased $4.6 million.

There was a decrease of $29 million in restricted net assets reported in connection with the City’s governmental activities and restricted net assets reported in connection with the City’s business-type activities increased by $4.5 million in 2009. The key factors in these changes were the increase in expenditures of funds restricted for capital projects and in unspent bond proceeds. The reason for the increase in business type assets is an increase in restricted activities for Water Works and an increase in capital spending.

The City’s governmental activities amount invested in capital assets, net of related debt, increased $28.8 million as debt increased and bond proceeds and capital grants were used to complete certain capital projects during 2009. The City’s business-type activities amount invested in capital assets, net of related debt, decreased $1.6 million.

30 CITY OF CINCINNATI Changes in Net Assets (AMOUNTS IN THOUSANDS) Governmental Business-type Total Activities Activities Revenues: 2009 2008 2009 2008 2009 2008 Program Revenues: Charges for Services $ 145,338 $ 139,476 $ 146,619 $ 151,617 $ 291,957 $ 291,093 Operating Grants and Contributions 54,101 43,632 54,101 43,632 Capital Grants and Contributions 22,951 21,502 9,971 5,293 32,922 26,795 General Revenues: Property Taxes 80,153 75,062 80,153 75,062 Income Taxes 299,778 319,565 299,778 319,565 Admission Taxes 4,028 4,570 4,028 4,570 Shared Taxes 60,320 73,079 60,320 73,079 Occupancy Taxes 1,884 2,222 1,187 1,287 3,071 3,509 Unrestricted Investment Earnings 14,461 19,363 3,662 6,320 18,123 25,683 Miscellaneous 1,350 699 2,494 2,455 3,844 3,154 Total Revenues 684,364 699,170 163,933 166,972 848,297 866,142

Expenses: General Government 140,573 139,727 140,573 139,727 Community Development 44,194 48,658 44,194 48,658 Parks and Recreation 42,345 44,616 42,345 44,616 Public Safety 253,413 247,924 253,413 247,924 Transportation and Engineering 42,361 37,965 42,361 37,965 Transit System 46,537 45,389 46,537 45,389 Public Services 48,987 60,227 48,987 60,227 Public Health 48,017 45,703 48,017 45,703 Interest on long-term debt 22,180 21,276 22,180 21,276 Water Works 117,007 113,804 117,007 113,804 Parking Facilities 8,831 8,969 8,831 8,969 Convention Center 14,605 18,372 14,605 18,372 General Aviation 2,529 2,753 2,529 2,753 Municipal Golf 6,141 6,369 6,141 6,369 Stormwater Management 9,998 8,452 9,998 8,452 Total Expenses 688,607 691,485 159,111 158,719 847,718 850,204 Change in net assets before transfers and special item (4,243) 7,685 4,822 8,253 579 15,938

Transfers 202 2,726 (202) (2,726) - - Special Items - (978) - (978)

Change in net assets (4,041) 10,411 4,620 4,549 579 14,960

Net assets – January 1st 873,069 862,658 845,902 841,353 1,718,971 1,704,011

Net assets – December 31st $ 869,028 $ 873,069 $ 850,522 $ 845,902 $ 1,719,550 $ 1,718,971

31 Governmental activities. Governmental activities decreased the City’s net assets in 2009 by $4 million. Key elements of the change in net assets include:

Revenues The City realized decreased revenues of $14.8 million for 2009. Highlights include:

• Charges for services increased by $5.9 million. This includes a $7.1 million increase in General Government. Fees charged to the City Retirement System for health insurance increased by $5.8 million and the Regional Computer Center charges decreased by $2.0 million. Community Development revenue decreased by $2.1 million. Public Safety revenue decreased $2.2 million. Transportation and Engineering revenue decreased $1.5 million and Public Health increased $1.4 million. • Operating grants and contributions increased by $10.5 million. Community Development increased $7.4 million, Public Health increased $2.0 million and Public Safety increased $6.7 million. General Government decreased by $1.3 million, Public Services decreased by $1.8 million and Parks and Recreation decrease of $2.6 million. • Capital grants and contributions increased by $1.4 million due to increases in General Government of $1.0 million, Community Development of $.9 million and Transportation and Engineering of $2.0 million. Parks and Recreation decreased by $2.4 million. • Property taxes increased $5.1 million due to increased TIF revenues. • Income tax decreased $19.8 million due to the economic downturn. • Investment earnings decreased by $4.9 million due to a decrease in the general investment rate of return. • Shared taxes decreased $12.8 million due to decreases in estate taxes and the local government fund received by the city.

Expenses Expenses for governmental activities decreased by $2.9 million in 2009. Highlights include:

• Employee medical expenses increased by $10.0 million • Compensated absences increased by $6.0 million • Capital expenses increased due to receiving additional capital grants. • Departmental expenses decreased due to budget reductions related to the shortfall in revenues. • Additional pension liability in 2009 was less than 2008 by $9.0 million • Claims liability decreased by $3.0 million.

Business-type activities. Business-type activities increased the City’s net assets in 2009 by $4.6 million, accounting for 100% of the growth in the government’s net assets. Key elements of the increase include: • Charges for Services decreased $5 million. Water Works revenue is down $3.9 million due to a decrease in water consumption and Convention Center revenue is down $1.2 million due to less events in 2009. • Capital Grants and Contributions revenues increased by $4.7 million due to a $6.6 million increase in Water Works and a $1.0 million dollar decrease in Convention Center. • Investment earnings decreased by $2.7 million due to a decrease in the general investment rate of return. • Water Works expenses increased by $3.2 million due to increased personnel and fringe benefits expense. • Convention Center expenses decreased $3.8 million due to reduced expenses resulting from fewer events in 2009. • Stormwater expenses increased $1.5 million due to expenses related to the barrier dam project.

32 Governmental Activity Expenses and Program Revenues - Governmental Activities 220,000 200,000 180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000

Dollar Amounts in Thousands 20,000 - General Comm Parks and Public Trans and Transit Public Public Int on LT Govt Dev Recreatio Safety Eng Systems Services Health Debt Expenses 140,573 44,194 42,345 253,413 42,361 46,537 48,987 48,017 22,180 Program Revenues 110,673 31,580 9,358 26,464 19,382 5,781 19,152 -

Expenses Program Revenues

Revenues by Source - Governmental Activities

Shared Taxes 8.8% Occupancy Taxes Charges for Services .3% 21.3%

Admission Taxes Operating Grants and .6% Contribution 8.0%

Income Taxes Capital Grants and 43.9% Contribution 3.3% Unrestricted Investment Earnings Property Taxes 2.1% 11.7%

33 Expenses and Program Revenues - Business-type Activities

140,000 120,000 100,000 80,000 60,000 40,000 20,000 - Dollar Amounts in Thousands Water Works Parking Convention General Municipal Stormwater Facilities Center Aviation Golf Management Business-type Activity

Expenses Program Revenues

Revenues by Source-Business-type Activities

Charges for Services 89.5%

Miscellaneous 1.5% Occupancy Tax Unrestricted Receipts Investment Earnings .7% 2.2% Capital Grants and Contribution 6.1%

34 Financial analysis of the Government’s Funds

As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance related legal requirements.

Governmental funds. The focus of the City’s governmental funds (footnote 1) is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. Nonspendable fund balances are amounts that can not be spent, such as inventory, advances or nonexpendable trust balances. Restricted fund balances are amounts that are restricted legally for a specific purpose, such as a grant or by debt decree. Committed fund balances are amounts committed by the governing body through council legislation, such as budgetary commitments. Assigned fund balances are internal commitments by the governments’ management for a specific purpose.

As of the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $424.9 million, a decrease of $278 thousand in comparison with the prior year. Approximately 57.4% or $243.9 million of this total amount constitutes restricted fund balance, which is available for spending for a specific purpose. The committed fund balance, $28.6 million or 6.7 %, has been committed by council legislation at the end of the year.

The general fund is the primary operating fund of the City. During 2009, the decision was made to include the working capital reserve fund with the general fund as a stabilization fund and is included in the unassigned fund balance. At year end, the balance in the working capital reserve fund was $26 million. The total unassigned fund balance of the general fund (including the working capital reserve) was $35.2 million, which is 10.4% of general fund revenues.

The fund balance of the City’s general fund decreased by $2 million during the current fiscal year compared to the restated fund balance. Key factors of the decrease are as follows:

• Total revenues decreased by $17.2 million offset by an expenditure decrease of $10.7 million in 2009. • Taxes decreased by $7.5 million. Income tax revenue decreased $6.4 million, property tax revenue decreased $530,000 and admission tax decreased $543,000 due to the economic downturn. • Investment income decreased $4.6 million due to lower interest rates on investments. • Intergovernmental revenue decreased $7.8 million due to estate taxes decreasing $4.8 million and local government fund revenues decreasing $3.7 million. State reimbursements for property taxes increased by $684,000. • Charges for services increased $527,000. General government increased $617,000, emergency transport services increased $221,000 and public services increased $336,000. • Inspection certificates revenue was down $124,000, public safety revenue was down $324,000 and public health revenue was down $141,000. • Miscellaneous revenue was up $2 million from reimbursement of prior year expenses and an increase in salt inventory. • Expenditures for employee benefits increased $442,000 and pension contributions increased $1.1 million. • Expenditures for Public Services decreased $5.0 million due to the transfer of the Office of Environmental Quality to the City Manager’s Office and decreased expenditures due to budget reductions. • Expenditures for the City Manager’s Office increased $2.3 million due to the reorganization and expansion of the Office of Environmental Quality. • Other departments had decreased expenditures related to budget reductions as follows: $4.9 million in Public Safety, $1 million in Community Development and Planning, $698,000 in the Parks Department, $604,000 (increase) in Transportation and Engineering, $787,000 in the Regional Computer Center, $920,000 in the Health Department, $292,000 in the Human Resources Department and $393,000 in the Finance Department. • Transfers for 2009 were a net $8.1 million transfer in. In 2008, the transfers were a net $3.2 million transfer out.

35 The capital projects fund has a total fund balance of $183.2 million, which is a decrease of $1.2 million from 2008. Key factors of the increase are as follows:

• Taxes decreased by $3.2 million from 2008 due to reduced income taxes. • Uses of money and property decreased by $1.3 million due to decreased investment income. • Federal grants decreased by $1.9 million and state grants decreased by $.6 million. • Capital expenditures increased $9.9 million including public safety projects, street improvement projects, community development improvement projects, urban renewal projects, technology improvements, and facility improvements. • Net transfers in decreased $35.2 million due to new economic development projects that will be supported by tax increment financing. • General obligation bonds and notes issued increased $17.8 million.

The debt service fund has a total fund balance of $73.1 million of which $65.4 is restricted for the payment of debt service and $7.7 million is restricted for capital projects. The net increase in fund balance was $6.1 million which is the amount in bond funds that hasn’t been transferred to capital projects. Also, there was an increase of $4.9 million in general obligation bonds, a decrease of $22.5 million in revenue bonds and $17.4 million decrease in net transfers out.

Proprietary funds. The City’s proprietary funds provide the same type of information found in the government–wide financial statements, but in more detail. Unrestricted net assets of the nonmajor enterprise funds are $17.3 million. The total growth in net assets for the Water Works fund was $13.7 million and a decrease in net assets for the other enterprise funds was $8.5 million. Other factors concerning the finances of these funds have been addressed in the discussion of the City’s business-type activities.

General Fund Budgetary Highlights

Revenue estimates for 2009 were reduced from $365 million to $337.5 million, a reduction of $27.5 million as a result of a decline in income taxes, admission taxes, investment income and state shared revenues. As a result of reduced revenues, budget reductions occurred and the final amended General Fund budget had total appropriations of approximately $12.8 million less than the original budget. The original appropriations were $370.4 million, while the final appropriations were $357.7 million. Actual expenditures were $1.3 million less than the final appropriation from savings in Clerk of Council, Fire Department and employee benefits. Key elements of the changes in appropriation include:

Transfers out totaling $364,000 were funded from available fund balance for the 2009 Capital Budget.

During 2009, the following transfers to the General Fund occurred: • $4.7 million from the unspent cash capital returned to source • $6.5 million from the Permanent Improvement Fund related to the excess income tax from prior years.

Appropriation Changes for 2009 are as follows: • $2.0 million increase for additional salt related to the winter storms. • $14.9 million net decrease related to across the board reductions due to the reduction in revenues.

All other changes in appropriations were due to transfers among agencies and were within the original approved budget.

36 Capital Asset and Debt Administration

Capital Assets. The City’s investment in capital assets for its governmental and business-type activities as of December 31, 2009 is $2.1 billion (net of accumulated depreciation). This investment in capital assets includes land, construction in progress, buildings, systems, improvements, machinery and equipment, park facilities, streets, and bridges. The total increase in the City’s investment in capital assets for the current fiscal year was 4% (5.6% increase for governmental activities and 2.6% increase for business-type activities).

City of Cincinnati’s Capital Assets (net of depreciation) (AMOUNTS IN THOUSANDS) Governmental Business-type Total Activities Activities 2009 2008 2009 2008 2009 2008 Land $ 172,685 $ 167,875 $ 40,317 $ 39,553 $ 213,002 $ 207,428 Buildings 74,908 45,626 155,494 162,550 230,402 208,176 Improvements 164,674 158,893 717,127 665,081 881,801 823,974 Machinery and Equipment 58,257 60,142 104,110 109,465 162,367 169,607 Infrastructure 426,555 398,788 426,555 398,788 Construction in Progress 119,774 132,208 92,857 105,640 212,631 237,848 Property Acquired under Capital Leases 546 269 346 279 892 548

Total $ 1,017,399 $ 963,801 $ 1,110,251 $ 1,082,568 $ 2,127,650 $ 2,046,369

Total capital assets, net of accumulated depreciation, increased $81.3 million. Major capital asset events during 2009 included the following:

• Governmental activities capital assets increased $53.6 million in 2009 net of depreciation and included:

o Construction in progress decreased $12.4 million. o Infrastructure improvement for bridges, retaining walls, traffic signal upgrades and street improvements and upgrades increased by $27.8 million (net of depreciation). o Machinery and equipment decreased $1.9 million (net of depreciation). o Buildings increased $29.3 million (net of depreciation). o Improvements increased $5.8 million (net of depreciation).

• Business-type activities capital assets increased $27.7 million net of depreciation and included:

o Improvements in water utilities increased $57.1 million o Improvements in Convention Center decreased $5.0 million. o Construction in progress decreased $12.8 million. o Machinery and equipment decreased $5.3 million (net of depreciation).

Additional information on the City’s capital assets can be found in note 14 on pages 97 to 99 of this report.

37 Long-term debt. At the end of the current fiscal year, the City had $898.9 million in short and long-term bonds and notes outstanding. Of this amount, $402.8 million comprises debt backed by the full faith and credit of the government. The remainder of the City’s debt represents bonds secured solely by specified revenue sources (i.e., revenue bonds).

City of Cincinnati’s Outstanding Debt General Obligation and Revenue Bonds (AMOUNTS IN THOUSANDS) Governmental Business-type Total Activities Activities 2009 2008 2009 2008 2009 2008 General Obligation Bonds & Notes $ 389,680 $ 363,120 $ 13,155 $ 15,470 $ 402,835 $ 378,590 Revenue Bonds & Notes 80,140 73,375 415,965 332,635 496,105 406,010

Total $ 469,820 $ 436,495 $ 429,120 $ 348,105 $ 898,940 $ 784,600

During the current fiscal year, the City’s total debt increased by $114.3 million (14.6 percent). Key events contributing to the change in long-term debt balances are as follows:

• In July 2009 the City issued $39.25 million in various purpose general obligation bonds and $25 million in various purpose general obligation bonds with additional municipal income tax pledge. Series 2009A included $17.6 million for street, public building and equipment improvements, $4.4 million for parks and recreation improvements, $15 million for public improvements to the MSD office building project, and $2.2 million for economic development. Series 2009B included $8 million for street improvements, $2 million for public building improvements, and $15 million urban redevelopment bonds. • During 2009, the City issued $12.8 million in governmental activities revenue bonds for the Graeter’s manufacturing project and the Columbia Square project. • In 2009, the City issued bonds in the amount of $5 million to refund $4.8 million in debt for Shillito’s Loft. • In 2009, the City issued $136 million in revenue bonds for Water Works improvements. • During 2009 $56.2 million in revenue bonds were redeemed, of which $52.7 million were for Water Works and $3.5 million were for economic development projects. • During 2009 $45.1 million in general obligation bonds were redeemed, of which $2.3 million were for Water Works. • During 2009 $2.6 million in short-term revenue notes were redeemed for governmental activities. • During 2009 $34.3 million in short-term general obligation notes were issued and $42.6 million were redeemed for governmental activities. • During 2009, $6.3 million in short-term general obligation notes were issued for business type activities.

The City’s general obligation bond rating by Standard and Poor’s Corporation and Moody’s Investor Services, Inc. is “AA+” and “Aa1”, respectively.

The City is within all of its legal debt limitations. The Ohio Revised Code provides that the net debt (as defined in the Ohio Revised Code) of a municipal corporation, whether or not approved by the electors, shall not exceed 10.5% of the total value of all property in the municipal corporation as listed and assessed for taxation. In addition, the unvoted net debt of municipal corporations cannot exceed 5.5% of the total taxation value of property. The statutory limitations on debt are measured by the ratio of net debt to tax valuation and expressed in terms of a percentage. The City had a legal debt margin for total debt of $396.5 million and a legal debt margin for unvoted debt of $99.8 million.

Additional information about the City’s long-term debt can be found in note 9 on pages 84 to 73 of this report.

38 Economic Factors and Next Year’s Budgets and Rates

• The unemployment rate for the Cincinnati MSA was 9.9% at December 2009, which is higher than a year ago by 4.1%. This rate compares favorably to the State’s average unemployment rate of 10.5% but is higher than the national average rate of 9.3%. • The occupancy rate of the central business district Class A office space was 77% at the end of 2009 which is the less than the 2008 occupancy rate of 86%. • The City is experiencing increasing costs for employee health care, retirement and contractually obligated labor costs.

All of these factors were considered in preparing the City’s biennial budget for the fiscal year 2010.

General Fund revenues for 2010 are $2.9 million less than the 2009 estimate and $7.2 million less than 2009 actual revenues. The General Fund balance is estimated to be $2.0 million, on a budgetary basis, at the end of 2010. This is a reduction of $5.6 million from the 2009 actual year-end fund balance of $7.6 million on a budgetary basis due in part to a transfer out of the general fund to the working capital reserve and emergency reserve accounts of $2.6 million. The reduction is also due to costs associated with labor contracts and decreases in revenues related to income tax, admissions taxes, state shared revenues from the State of Ohio and investment income. For 2010, the reserve balance is estimated to be $23.9 million (composed of $19.5 working capital reserve, $2.4 million emergency reserve and the estimated $2.0 million in carryover fund balance), or 7% of 2010 General Fund revenues.

Transfers in of $17.1 million will be used to balance the budget for 2010 including $8.1 million from the Working Capital Reserve Fund, $2.4 million from the Other City Deposits Fund and $6.6 million from the Compensatory Time Reserve Fund.

This is the first time the Working Capital Reserve Fund was used since its inception in 1984. It is City Council’s highest priority to replenish this fund back to 8% of General Fund revenues. A transfer of $1.1 million occurred in 2010 (part of the $2.6 million transfer above) to replenish this fund.

One of the City’s major budget priorities for 2009 was economic development. The Economic Development Division was fully staffed to focus on bringing investments to the City that create jobs and increase the City’s tax base. The Banks, Streetcar Project and Queen City Square are just a few examples of new economic development happening in Cincinnati.

Requests for Information

The financial report is designed to provide a general overview of the City’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Director of Finance, City Hall, Room 250, 801 Plum Street, Cincinnati, Ohio, 45202.

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40 BASIC

FINANCIAL STATEMENTS

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42 City of Cincinnati, Ohio Statement of Net Assets December 31, 2009 (Amounts in Thousands)

Governmental Business-Type Activities Activities Total ASSETS: Current Cash and Equivalents $ 23,025 $ 1,489 $ 24,514 Equity in City Treasury 142,531 31,969 174,500 Advances and Petty Cash 158 158 Investments, at Fair Value 72,935 72,935 Receivables: Taxes 131,965 141 132,106 Accounts, Net 10,461 19,968 30,429 Special Assessments 9,736 9,736 Accrued Interest 7,758 2,110 9,868 Due from Fiduciary Activities 3,971 3,971 Due from Other Government 23,552 12,177 35,729 Prepaid Items 1,333 2,240 3,573 Inventory 6,859 5,118 11,977

Restricted Assets: Cash and Cash Equivalents 21,880 21,880 Equity in City Treasury 4,899 4,899 Investments, at Fair Value 40,582 40,582 Internal Balances (6,221) 6,221

Total Current Assets 428,063 148,794 576,857

Noncurrent Equity in City Treasury 228,736 51,295 280,031 Restricted Equity in City Treasury Cash 7,861 7,861 Restricted Cash and Cash Equivalents 35,113 35,113 Accounts Receivable, Net 15,190 15,190 Deferred Charges 5,015 7,470 12,485 Land 172,685 40,317 213,002 Buildings, net of Accumulated Depreciation 74,908 155,494 230,402 Improvements, net of Accumulated Depreciation 164,674 717,127 881,801 Machinery and Equipment, net of Accumulated Depreciation 58,257 104,110 162,367 Construction in Progress 119,774 92,857 212,631 Property Acquired under Capital Leases, net of Accumulated Amortization 546 346 892 Infrastructure Assets, net of Accumulated Depreciation 426,555 426,555

Total Noncurrent Assets 1,266,340 1,211,990 2,478,330

Total Assets $ 1,694,403 $ 1,360,784 $ 3,055,187 (Continued)

The accompanying notes to the financial statements are an integral part of this statement.

43 City of Cincinnati, Ohio Statement of Net Assets December 31, 2009 (Amounts in Thousands) (Continued) Governmental Business-Type LIABILITIES: Activities Activities Total Current Accounts Payable $ 22,604 $ 5,238 $ 27,842 Withholdings and Other Deposits 9,278 9,278 Due to Fiduciary Activities 940 281 1,221 Due to Other Governmental Agencies 788 788 Accrued Payroll 15,688 1,984 17,672 Accrued Liabilities 9,133 1,024 10,157 Accrued Interest 2,288 47 2,335 Deposits Payable 8,097 4 8,101 Unearned Revenue 79,790 7,053 86,843 Obligations Under Capital Leases 97 115 212 Compensated Absences Payable 34,372 4,200 38,572 Unpaid Claims 19,341 194 19,535 Ohio Public Works Commission Loan 173 156 329 Ohio Water Development Authority Loan 225 225 Matured Bonds and Interest Payable 532 532 General Obligation Bonds and Notes Payable 34,990 2,315 37,305 Revenue Bonds and Notes Payable 3,140 14,865 18,005 Other 22 22 Advances from Other Government 21 21 Payable from Restricted Assets: Construction Contracts 5,078 5,078 Deposits Payable 59 59 Total Current Liabilities 240,506 43,626 284,132 Noncurrent Non-Current Obligations Under Capital Leases 404 169 573 General Obligation Bonds and Notes Payable 354,690 10,840 365,530 Revenue Bonds and Notes Payable 77,000 401,100 478,100 Compensated Absences Payable 67,315 4,335 71,650 Deferred Bond Premium 6,569 20,899 27,468 Other Liabilities 1,835 1,835 Ohio Public Works Commission Loan 2,856 2,416 5,272 Ohio Water Development Authority Loan 4,695 4,695 Urban Redevelopment Loan 4,698 4,698 Unpaid Claims Payable 11,750 11,750 Net Pension Obligation 37,583 11,045 48,628 Net Other Post Employment Benefit Obligation 24,867 6,439 31,306 Total NonCurrent Liabilities 584,869 466,636 1,051,505 Total Liabilities 825,375 510,262 1,335,637 Net Assets Investment in Capital Assets, Net of Related Debt 674,690 705,909 1,380,599 Restricted for: Debt Service 15,688 40,619 56,307 Capital Projects 59,789 59,789 Public Transit 13,500 13,500 Public Safety 5,746 5,746 Parks and Recreation 6,043 6,043 Public Health 1,232 1,232 Other Purposes 24,073 6,819 30,892 Permanent Funds - Expendable 1,465 1,465 Permanent Funds - Nonexpendable 6,214 6,214 Unrestricted 60,588 97,175 157,763 Total Net Assets $ 869,028 $ 850,522 $ 1,719,550 The accompanying notes to the financial statements are an integral part of this statement. 44 City of Cincinnati, Ohio Statement of Activities For the year ended December 31, 2009 (Amounts in Thousands) Net (Expense) Revenue and Program Revenues Changes in Net Assets Operating Capital Charges Grants and Grants and Governmental Business-Type Expenses for Services Contributions Contributions Activities Activities Total Functions/Programs

Governmental Activities: General Government $ 140,573 $ 107,959 $ 1,179 $ 1,535 $ (29,900) $ (29,900) Community Development 44,194 408 29,777 1,395 (12,614) (12,614) Parks and Recreation 42,345 7,314 1,297 747 (32,987) (32,987) Public Safety 253,413 14,230 12,234 (226,949) (226,949) Transportation and Engineering 42,361 85 26 19,271 (22,979) (22,979) Transit System 46,537 (46,537) (46,537) Public Services 48,987 5,735 43 3 (43,206) (43,206) Public Health 48,017 9,607 9,545 (28,865) (28,865) Interest on long-term debt 22,180 (22,180) (22,180) Total governmental activities 688,607 145,338 54,101 22,951 (466,217) (466,217)

Business type activities: Water Works 117,007 115,377 9,704 $ 8,074 8,074 45 Parking Facilities 8,831 8,860 8 37 37 Convention Center 14,605 5,236 (9,369) (9,369) General Aviation 2,529 1,932 259 (338) (338) Municipal Golf 6,141 6,458 317 317 Stormwater Management 9,998 8,756 (1,242) (1,242)

Total Business-type activities 159,111 146,619 9,971 (2,521) (2,521) Total $ 847,718 $ 291,957 $ 54,101 $ 32,922 (466,217) (2,521) (468,738)

General Revenues: Taxes: Property taxes 80,153 80,153 Income taxes 299,778 299,778 Admission taxes 4,028 4,028 Shared taxes 60,320 60,320 Occupancy taxes 1,884 1,187 3,071 Unrestricted investment earnings 14,461 3,662 18,123 Miscellaneous 1,350 2,494 3,844 Transfers between governmental and business-type activities 202 (202) Total general revenues, miscellaneous, and transfers 462,176 7,141 469,317

Change in net assets (4,041) 4,620 579 Net assets-beginning 873,069 845,902 1,718,971 Net assets-ending $ 869,028 $ 850,522 $ 1,719,550

The accompanying notes to the financial statements are an integral part of this statement. City of Cincinnati, Ohio Balance Sheet Governmental Funds December 31, 2009 (Amounts in Thousands) Other Total Capital Debt Governmental Governmental General Projects Service Funds Funds

ASSETS Cash and Equivalents $ 28 $ 21,222 $ $ 1,775 $ 23,025 Equity in City Treasury Cash 81,664 131,630 54,896 65,182 333,372 Advances and Petty Cash 158 158 Investments, at Fair Value 47,463 14,409 11,063 72,935 Receivables: Taxes 59,984 16,900 46,872 8,209 131,965 Accounts, Net 6,159 16,673 2,600 25,432 Special Assessments 313 70 9,353 9,736 Accrued Interest and Dividends 5,249 386 1,092 445 7,172 Due from Other Funds 2,748 1,556 1,106 1,619 7,029 Due from Other Governments 12,550 1,149 9,574 23,273 Inventory 5,330 709 470 6,509 Advances to Other Funds 302 1,512 1,814

Total Assets $ 174,485 $ 237,758 $ 118,375 $ 111,802 $ 642,420

LIABILITIES AND FUND BALANCES Liabilities: Accounts Payable $ 3,039 $ 6,822 $ 19 $ 6,407 $ 16,287 Revenue Notes Payable Withholdings and Other Deposits 9,527 9,527 Due to Other Funds 2,535 3,454 1 1,791 7,781 Accrued Payroll 13,231 10 1,951 15,192 Accrued Liabilities 137 1 2,651 2,789 Deposits Payable 3,442 1,595 518 2,111 7,666 Deferred Revenue 51,629 32,305 44,158 17,200 145,292 Estimated Liability for Unpaid Claims 429 11 440 Advances from Other Funds 521 10,424 1,116 12,061 Advances from Other Governments Matured Bonds and Interest Payable 532 532

Total Liabilities 84,490 54,601 45,238 33,238 217,567

Fund Balances: Nonspendable 5,790 17,213 3,447 26,450 Restricted 118,630 73,137 52,111 243,878 Committed 12,885 15,764 28,649 Assigned 36,106 31,550 24,587 92,243 Unassigned 35,214 (1,581) 33,633

Total Fund Balances 89,995 183,157 73,137 78,564 424,853

Total Liabilities and Fund Balances $ 174,485 $ 237,758 $ 118,375 $ 111,802 $ 642,420 The accompanying notes to the financial statements are an integral part of this statement.

46 CITY OF CINCINNATI, OHIO Reconciliation of the Balance Sheet to the Statement of Net Assets Governmental Funds December 31, 2009 (Amounts in Thousands)

Total fund balances - governmental funds $ 424,853

Amounts reported for governmental activities in the statement of net assets are different because:

Capital assets (net of accumulated depreciation) used in governmental activities are not financial 1,017,399 resources and therefore are not reported as assets in governmental funds.

Certain receivables will be collected next year, but are not available soon enough to pay for the current period's expenditures, and therefore are deferred in the funds. 65,669

Some amounts reported for governmental-type activities in the statement of net assets are different because certain internal service fund assets and liabilities are included with business-type activities. (508)

Seven internal service funds are used by the City's management. The assets and liabilities of the internal service funds are included with governmental activities. The net property of $32,592 as it relates to the internal service funds is included in the capital asset amount above. 9,957

Bond issue costs and discounts are expended in the fund level financial statements but are capitalized and amortized over the life of the bonds in the government-wide financial statements. This is the unamortized portion of those issue costs and discounts. 5,015

Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-term liabilities at year-end consist of: G.O. Bonds and notes payable (389,680) Revenue bonds payable (80,140) Deferred bond premium (6,569) Compensated absences (99,812) Net Pension Obligation (33,407) Net Other Post Employment Benefit Obligation (23,118) Ohio Public Works Commission Loans (3,029) Unpaid claims payable (9,555) Accrued interest on bonds (2,288) Accrued Liabilities (3,401) Other liability (1,857) Capital leases payable (501)

Total net assets - - governmental activities (page 44) $ 869,028

The accompanying notes to the financial statements are an integral part of this statement.

47 City of Cincinnati, Ohio Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the year ended December 31, 2009 (Amounts in Thousands)

Other Total Capital Debt Governmental Governmental General Projects Service Funds Funds REVENUES Taxes $ 250,923 $ 34,553 $ 41,954 $ 59,416 $ 386,846 Licenses and Permits 7,709 4,336 12,045 Use of Money and Property 13,596 536 22,803 4,474 41,409 Special Assessments 10 4,373 4,383 Intergovernmental Revenue 43,792 2,559 6,418 18,745 71,514 Federal Grants 8,758 39,397 48,155 State Grants and Subsidies 8,023 2,438 10,461 Charges for Current Services 18,680 77 15,309 34,066 Miscellaneous 4,523 5,400 3,293 13,216 Total Revenues 339,223 59,916 71,175 151,781 622,095

EXPENDITURES Current: General Government 39,359 4,304 1,863 19,635 65,161 Community Development 6,676 150 25 4,567 11,418 Parks and Recreation 19,522 30 9,312 28,864 Public Safety 169,598 11,319 180,917 Transportation and Engineering 3,485 4,737 8,222 Transit System 46,537 46,537 Public Services 18,543 15,006 33,549 Public Health 18,051 16,224 34,275 Employee Benefits 74,064 10,423 84,487 Capital Outlay 119,866 22,705 142,571 Debt Service: Principal Retirement 191 41,661 41,852 Interest 260 21,299 319 21,878 Bond Issuance Cost 1,070 1,070 Total Expenditures 349,298 124,801 65,918 160,784 700,801 Excess (Deficiency) of Revenues over (under) Expenditures (10,075) (64,885) 5,257 (9,003) (78,706)

OTHER FINANCING SOURCES(USES) General Obligation Bonds and Notes Issued 38,957 25,293 64,250 Refunding Bonds Issued 5,080 5,080 Payments to Refunded Bonds Escrow Agent (4,800) (4,800) Revenue Bonds and Notes Issued 12,770 12,770 Discount on Bonds and Notes Issued (31) (31) Premium on Bonds Issued 1,279 1,279 Transfers In 11,354 51,461 10,619 7,007 80,441 Transfers (Out) (3,293) (26,742) (49,415) (1,111) (80,561) Total Other Financing Sources(Uses) 8,061 63,676 795 5,896 78,428

Net change in fund balances (2,014) (1,209) 6,052 (3,107) (278)

Fund Balances at January 1 66,697 209,678 67,085 81,671 425,131 Restatement of Prior Year Fund Balance 25,312 (25,312) Restated Fund Balance at January 1 92,009 184,366 67,085 81,671 425,131

Fund Balances at December 31 $ 89,995 $ 183,157 $ 73,137 $ 78,564 $ 424,853

The accompanying notes to the financial statements are an integral part of this statement.

48 CITY OF CINCINNATI, OHIO Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities Governmental Funds For the year ended December 31, 2009 (Amounts in Thousands)

Net change in fund balances - total governmental funds $ (278) Amounts reported for governmental activities in the statement of activities are different because:

Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. 58,301

theGovernmental current period's funds expenditures, report cash received and therefore for assets are deferred disposed in of the as funds. revenue. However, in the statement of activities, that cash offsets the difference between the book value and accumulated depreciation of the disposed asset. (4,704)

Statement of activities reports an increase in revenues due to current activity in deferred revenues which is not reported at fund level. (311) liabilities of the internal service fund are included with governmental activities. The The long-term liability for compensated absences is not recorded in the fund level, but is capitalizedreported andin the amortized statement over of activities.the life of theThis bonds is the in current the government-wide year change in thefinancial liability, statements. Thisreported is the unamortized as an expense portion in the of statement those issue of costsactivities. and discounts. (10,623)

The long-term liability for unpaid claims is not recorded in the fund level, but is reported in the thereforestatement are ofnot activities. reported Thisas liabilities is the current in the funds.year change Long-term in the liabilities liability, reportedat year-end as anconsist expense of: 8,402 in the statement of activities.

The long-term liability for Net Pension Obligation is not recorded in the fund level, but is reported in the statement of activities. This is the current year change in the liability, reported as an expense in the statement of activities. (12,564)

The long-term liability for Net Other Post Employment Benefit Obligation is not recorded in the fund level, but is reported in the statement of activities. This is the current year change in the liability, reported as an expense in the statement of activities. (3,621)

Bond proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net assets. Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net assets. This is the amount by which proceeds exceeded repayments. (35,684)

(Continued)

49 CITY OF CINCINNATI, OHIO Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities Governmental Funds For the year ended December 31, 2009 (Amounts in Thousands)

(Continued)

Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. $ 815

Bond premiums are included in revenue at the fund level, but capitalized and amortized over the life of the bonds in the government-wide financial statements. (563)

Bond issuance costs are included in expenditures at the fund level, but are deferred and amortized over the life of the bonds in the government-wide financial statements 675

Bond discounts are included in expenditures at the fund level, but are deferred and amortized over the life of the bonds in the government-wide financial statements (13)

Internal balances between the governmental activities and the business type activities are not reported at the fund level. 630

Internal service funds are used by management to charge the costs of certain activities, such as insurance and telecommunications, to individual funds. The net revenue(expense) of certain internal service funds is reported with governmental activities. (4,503)

Change in net assets of governmental activities (page 45) $ (4,041)

The accompanying notes to the financial statements are an integral part of this statement.

50 City of Cincinnati, Ohio Statement of Net Assets Proprietary Funds December 31, 2009 (Amounts in Thousands)

Governmental Business-Type Activities - Enterprise Funds Activities Other Total Internal Water Enterprise Enterprise Service Works Funds Funds Funds

ASSETS Current: Cash and Equivalents $ 1,443 $ 46 $ 1,489 $ Equity in City Treasury Cash 22,897 9,072 31,969 14,549 Receivables: Taxes 141 141 Accounts, Net 17,779 2,189 19,968 219 Accrued Interest 1,667 443 2,110 586 Due from Other Funds 1,630 410 2,040 7,835 Due from Other Governments 11,583 594 12,177 279 Prepaid Items 2,141 99 2,240 1,333 Inventory 5,118 5,118 350 Advances to Other Funds 50 9,210 9,260 1,214 Restricted Assets: Cash and Equivalents 21,880 21,880 Equity in City Treasury Cash 4,745 154 4,899 Investments, at Fair Value 40,582 40,582

Total Current Assets 131,515 22,358 153,873 26,365

Noncurrent: Equity in City Treasury Cash 36,746 14,549 51,295 23,346 Restricted Equity in City Treasury Cash 7,615 246 7,861 Restricted Cash and Equivalents 35,113 35,113 Deferred Charges 7,470 7,470 Land 2,727 37,590 40,317 283 Buildings, net of Accumulated Depreciation 124,386 31,108 155,494 Improvements, net of Accumulated Depreciation 555,184 161,943 717,127 7,042 Machinery and Equipment, net of Accumulated Depreciation 101,974 2,136 104,110 25,267 Construction in Progress 77,312 15,545 92,857 Property Acquired under Capital Leases, net of Accumulated Amortization 210 136 346 416

Total Noncurrent Assets 948,737 263,253 1,211,990 56,354

Total Assets $ 1,080,252 $ 285,611 $ 1,365,863 $ 82,719 (Continued) The accompanying notes to the financial statements are an integral part of this statement.

51 CITY OF CINCINNATI, OHIO Statement of Net Assets Proprietary Funds December 31, 2009 (Amounts in Thousands) Governmental Business-Type Activities - Enterprise Funds Activities Other Total Internal Water Enterprise Enterprise Service (Continued) Works Funds Funds Funds LIABILITIES Current: Accounts Payable $ 3,429 $ 1,809 $ 5,238 $ 6,392 Due to Other Funds 413 5,455 5,868 505 Due to Other Governments 788 788 Accrued Payroll 1,739 245 1,984 496 Accrued Liabilities 1,024 1,024 2,943 Accrued Interest 34 13 47 Obligations under Capital Lease 52 63 115 79 Deposits Payable 4 4 107 Unearned Revenue 7,053 7,053 167 Compensated Absences payable 3,746 454 4,200 1,011 Unpaid Claims payable 193 1 194 14,020 Ohio Public Works Commission Loan 156 156 Ohio Water Development Authority Loan 225 225 General Obligation Bonds and Notes Payable 2,000 315 2,315 Revenue Bonds Payable 14,865 14,865 Payable from Restricted Assets: Construction Contracts 5,078 5,078 Deposits Payable 59 59

Total Current Liabilities 32,777 16,436 49,213 25,720

Noncurrent: Urban Redevelopment Loans Payable 4,698 4,698 Compensated Absences Payable 3,626 709 4,335 864 Obligations Under Capital Lease 158 11 169 337 Ohio Public Works Commission Loan 2,416 2,416 Ohio Water Development Authority Loan 4,695 4,695 Estimated liability for Unpaid Claims 7,076 Advances from Other Funds 227 Advances from Other Governments 21 Revenue Bonds Payable 401,100 401,100 General Obligation Bonds and Notes Payable 7,800 3,040 10,840 Unamortized Bond Premiums 20,899 20,899 Net Pension Obligation 9,550 1,495 11,045 4,176 Net Other Post Employment Benefit Obligation 5,591 848 6,439 1,749

Total Noncurrent Liabilities 455,835 10,801 466,636 14,450

Total Liabilities 488,612 27,237 515,849 40,170

NET ASSETS Invested in Capital Assets, Net of Related Debt 465,187 240,722 705,909 32,592 Restricted Debt Service 40,619 40,619 Other 6,419 400 6,819 Unrestricted 79,415 17,252 96,667 9,957

Total Net Assets $ 591,640 $ 258,374 850,014 $ 42,549

Some amounts reported for business-type activities in the statement of net assets are different because certain internal service fund assets and liabilities are included with business-type activities. 508

Net assets of business type activities $ 850,522

The accompanying notes to the financial statements are an integral part of this statement.

52 City of Cincinnati, Ohio Statement of Revenues, Expenses, and Changes in Fund Net Assets Proprietary Funds For the year ended December 31, 2009 (Amounts in Thousands)

Governmental Business-Type Activities - Enterprise Funds Activities Other Total Internal Water Enterprise Enterprise Service Works Funds Funds Funds

OPERATING REVENUES Charges for Current Services $ 115,377 $ 31,242 $ 146,619 $ 132,585 Miscellaneous 2,064 430 2,494 1,975

Total Operating Revenues 117,441 31,672 149,113 134,560

OPERATING EXPENSES Personal Services 42,827 6,691 49,518 13,485 Contractual Services 9,249 16,241 25,490 4,207 Maintenance and Repairs 3,704 3,697 7,401 1,425 Materials and Supplies 8,475 436 8,911 10,465 Utilities 10,821 1,135 11,956 690 Insurance 117 63 180 106,609 Taxes 1 679 680 Depreciation and Amortization 24,161 12,481 36,642 4,503 Rent 1,256 358 1,614 1,311 Other expense 620 114 734 16

Total Operating Expenses 101,231 41,895 143,126 142,711

Operating Income(Loss) 16,210 (10,223) 5,987 (8,151)

NONOPERATING REVENUES(EXPENSES) Interest revenue 2,403 706 3,109 1,001 Build America Bond Subsidy 553 553 Occupancy tax receipts 1,187 1,187 Interest expense (13,525) (205) (13,730) (1) Loss on disposal of assets (1,621) (4) (1,625) (13) Nonoperating Revenues(Expenses) (12,190) 1,684 (10,506) 987 Income (Loss) before Contributions and Transfers 4,020 (8,539) (4,519) (7,164)

Transfers In 1,037 1,037 1,923 Transfers (Out) (1,239) (1,239) (1,601) Capital contributions 9,704 267 9,971 39 Change in Net Assets 13,724 (8,474) 5,250 (6,803) Net Assets at January 1 577,916 266,848 49,352 Net Assets at December 31 $ 591,640 $ 258,374 $ 42,549

Some amounts reported for business-type activities in the statement of net assets are different because the net revenue of certain internal service funds is reported with business type activities. (630)

Change in net assets of business type activities $ 4,620

The accompanying notes to the financial statements are an integral part of this statement. 53 City of Cincinnati, Ohio Statement of Cash Flows Proprietary Funds For the year ended December 31, 2009 (Amounts in Thousands) Governmental Business-Type Activities - Enterprise Funds Activities Other Total Internal Water Enterprise Enterprise Service Works Funds Funds Funds Cash Flows from Operating Activities: Receipts from Customers $ 118,970 $ 31,656 $ 150,626 $ 13,812 Receipts from Other Funds 66,096 Receipts from Retirement System 55,600 Payments to Suppliers (37,906) (18,795) (56,701) (126,977) Payments to Other Funds (2,928) (2,928) (1,825) Payments to Employees (37,206) (5,938) (43,144) (12,103) Payments for Property Taxes (1) (801) (802) Net Cash Provided (Used) by Operating Activities 43,857 3,194 47,051 (5,397) Cash Flows from Noncapital Financing Activities: Repayment of Advances Made To Other Funds 317 317 342 Repayment of Advances Received From Other Funds 668 Amount Due to Other Fund for Property Acquisition (668) Amount Due from Other Funds for City Notes 175 173 348 257 Amount In Accounts Payable from Notes 779 779 Amount Due to Other Funds for Notes 5,341 5,341 Advances To Other Funds (4,158) (4,158) Occupancy Tax Receipts 1,130 1,130 Transfers to Other Funds (1,239) (1,239) (1,606) Transfers from Other Funds 1,037 1,037 1,255 Net Cash Provided(Used) by Noncapital Financing 175 3,380 3,555 248

Cash Flows from Capital and Related Financing Activities: Capital Contributed by Other Sources 71 259 330 Capital Items Expensed 43 Proceeds from the Sale of Capital Assets 107 107 Proceeds from Ohio Water Development Authority Loan (86) (86) Proceeds from Sale of Bonds and Notes 136,030 136,030 Acquisition of Property, Plant and Equipment (14,970) (52) (15,022) (780) Interest Paid on Bonds and Notes (13,060) (204) (13,264) (1) Amortization Deferred Issuance Costs Principal Paid on Bonds and Notes (54,700) (315) (55,015) Principal Paid on Ohio Public Works Bonds (156) (156) Principal Paid on Ohio Water Development Authority Loan (217) (217) Payments on Long Term Capital Lease Obligations (39) (56) (95) (8) Additions to Construction in Progress (35,272) (5,508) (40,780) (1,447) Net Cash Provided (Used) by Capital and Related Financing Activities 17,708 (5,876) 11,832 (2,193) Cash Flow from Investing Activities: Investments Purchased (8,616) (8,616) Interest on Investments 2,268 591 2,859 910 Net Cash Provided (Used) by Investing Activities (6,348) 591 (5,757) 910 Net Increase (Decrease) in Cash and Cash Equivalents 55,392 1,289 56,681 (6,432) Cash and Cash Equivalents at Beginning of Year 75,047 22,778 97,825 44,327 Cash and Cash Equivalents at End of Year $ 130,439 $ 24,067 $ 154,506 $ 37,895

The accompanying notes to the financial statements are an integral part of this statement.

54 City of Cincinnati, Ohio Statement of Cash Flows Proprietary Funds For the year ended December 31, 2009 (Amounts in Thousands) Governmental Business-Type Activities - Enterprise Funds Activities Other Total Internal Water Enterprise Enterprise Service Works Funds Funds Funds Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Operating Income (Loss) $ 16,210 $ (10,223) $ 5,987 $ (8,151)

Depreciation and Amortization 24,161 12,481 36,642 4,503

Changes in Assets and Liabilities: (Increase) Decrease in: Receivables 179 133 312 744 Due from Other Funds 152 7 159 (3,633) Due from Other Governments 1,198 220 1,418 (1,016) Inventory 170 170 1,190 Prepaid Items (78) (64) (142) (73) Deferred Charges (494) (494) Increase (Decrease) in: Accounts Payable (889) 368 (521) 5 Deposits Payable (1,478) (3) (1,481) 48 Due to Other Funds (229) (45) (274) 342 Due to Other Governmental Agencies (675) (675) Accrued Payroll 552 15 567 (35) Accrued Liabilities (54) (54) 1,132 Unearned Revenue (373) (373) (323) Liability for Compensated Absences 764 72 836 2 Estimated Liability for Unpaid Claims 10 (2) 8 (1,540) Net Pension Obligation 2,248 346 2,594 1,111 Net Other Post Employment Benefit Obligation 2,056 316 2,372 297 Net Cash Provided (Used) by Operating Activities $ 43,857 $ 3,194 $ 47,051 $ (5,397)

Schedule of Noncash Investing, Capital and Financing Activities:

Acquisition of Property, Plant and Equipment from Acquired Through a Capital Lease $ $ $ $ 409 Transfer to Other Funds (364) Capital Contributions 9,633 9,633 118

Total Noncash Investing, Capital and Financing Activities $ 9,633 $ $ 9,633 $ 163

The accompanying notes to the financial statements are an integral part of this statement.

55 City of Cincinnati, Ohio Statement of Fiduciary Net Assets Fiduciary Funds December 31, 2009 (Amounts in Thousands)

Investment Pension Trust Trust Fund Agency ASSETS Cash and Equivalents $ 62,593 Equity in City Treasury Cash $ 63,447 $ 3,126 Investments, at fair value: Government Bonds 34,738 Government Agencies 13,371 Government Mortgage Backed Securities 70,152 Corporate Bonds 210,812 State and Local Obligations 6,254 Equities 1,054,843 Venture Capital 417,960 U. S. Treasury Bills and Notes 368,287 Real Estate 104,246 Other Bonds 20,234 Other 12,571

Total Investments, at Fair Value 1,945,181 368,287

Collateral on Loaned Securities 157,542

Receivables: Accounts, Net 290 36,061 Accounts Receivable for Securities Sold 8,944 Accrued Interest and Dividends 5,467 2,776 Due from Other Funds 1,221 Due from Other Governments 505 Loans Receivable 12,414 Machinery and Equipment 2,091 Accumulated Depreciation (1,477) Total Assets 2,194,771 63,447 $ 410,250

LIABILITIES Accounts Payable 1,592 $ 15,672 Accounts Payable for Securities Purchased 28,322 Due to Other Funds 3,971 Due to Other Governmental Agencies 365,012 Obligations Under Securities Lending 157,542 Accrued Payroll 27 1,843 Accrued Liabilities 11,404 37 Deposits Payable 3,039 Estimated Liability for Compensated Absences 89 8,505 Net Pension Obligation 11,056 Net Other Post Employment Benefit Obligation 5,086 Total Liabilities 202,947 $ 410,250 NET ASSETS Held in Trust for External Pool Participant 63,447 Held in Trust for Employees' Pension Benefits 1,370,133 Held in Trust for Employees' Postemployment Healthcare Benefits 621,691 Total Net Assets $ 1,991,824 $ 63,447

The accompanying notes to the financial statements are an integral part of this statement.

56 City of Cincinnati, Ohio Statement of Changes in Fiduciary Net Assets Fiduciary Funds For the year ended December 31, 2009 (Amounts in Thousands)

Investment Pension Trust Trust Fund ADDITIONS Contributions: $ $ Plan members 12,417 Employer 30,462 Other 1,785 Participant Deposits 471,753 Total Contributions 44,664 471,753

Transfers From Other Retirement Systems 315

Investment earnings: Interest and Dividends 50,701 2,031 Net Appreciation in the Fair Value of Investments 285,274 (285) Total Investment Earnings 335,975 1,746 Less Investment Management Expenses 5,193 Net Income (Loss) From Investing Activities 330,782 1,746

From Security Lending Activities: Securities Lending Income 1,273 Securities Lending Expense: Borrower Rebates 10 Management Fees (308) Total Securities Lending Expenses (298) Net Income from Securities Lending Activities 975

Total Additions (Losses) 376,736 473,499

DEDUCTIONS Benefit Payments: Pension and Annuities 132,466 Distributions to Participants 486,995 Hospital and Medical Care 56,364 Medicare 3,854 Dental Benefits 1,940 Vision Benefits 172 Death Benefits, Active and Retired 1,329 Loss Due to Death of Members with Loans 6 Transfers - Retirement to other systems 1,974 Total Benefits Payments 198,105 486,995

Refunds of Contributions 1,378

Administrative expenses: Personal Services 675 Contractual Services 813 Materials and Supplies 11 Depreciation 70 Total Administrative Expenses 1,569 Total Deductions 201,052 486,995 Change in Net Assets 175,684 (13,496) Net Assets at January 1 1,816,140 76,943 Net Assets at December 31 $ 1,991,824 $ 63,447 The accompanying notes to the financial statements are an integral part of this statement.

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58 NotesU to Financial Statements

PAGEU U

1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 61

2) DEPOSITS WITH FINANCIAL INSTITUTIONS AND INVESTMENTS 68

3) MIXED INVESTMENT POOL 76

4) COMMITMENTS 77

5) INTERFUND ASSETS/LIABILITIES 79

6) INTERFUND TRANSFERS 80

7) NET ASSETS / FUND BALANCE 81

8) LEASES 82

9) LONG-TERM DEBT 84

10) DEBT LIMITATION 93

11) TAXES 94

12) SHORT-TERM DEBT – BOND ANTICIPATION NOTES 96

13) RESTRICTED ASSETS 96

14) CAPITAL ASSETS 97

15) RECEIVABLES 100

16) CONTINGENT LIABILITIES 101

17) RISK MANAGEMENT 102

18) PRIOR PERIOD ADJUSTMENT 103

19) SUBSEQUENT EVENTS 103

20) POST EMPLOYMENT BENEFITS OTHER THAN PENSIONS 105

21) PENSION AND RETIREMENT 105

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60 CITY OF CINCINNATI, OHIO

NOTES TO FINANCIAL STATEMENTS

For the year ended December 31, 2009

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The City of Cincinnati is a political subdivision of the State of Ohio. It is governed with the powers of home rule by a directly elected mayor with a four-year term and a council of nine members who are elected at large for two- year terms. In 2001, Cincinnati converted from a city manager-council form of government, through which it had operated since 1926, to a strong mayor-council form of government.

A. Reporting Entity

The City as a reporting entity consists of only one governmental unit. Cincinnati has no component units - defined as entities for which the government is considered to be financially accountable.

The following organizations are included in the combined financial statements of the City because, under Ohio law, they have limited corporate powers and are therefore not legally separate organizations:

Cincinnati Park Board Cincinnati Recreation Commission City Planning Commission Cincinnati Board of Health Civil Service Commission

Cincinnati owns a railway line, the Cincinnati Southern Railway that was completed in 1881 and extends from Cincinnati, Ohio to Chattanooga, Tennessee, a distance of 335 miles. Improvements have been made at various intervals; the most recent, a major line revision to eliminate tunnel clearance restrictions, grades, and curves, was completed in 1964. Improvements other than buildings in Governmental Activities include $83,224,000 attributable to the City's cost to construct and improve this railway system. The railway is leased to the Cincinnati, New Orleans and Texas Pacific Railway Company until December 31, 2026, with an option to extend the lease for an additional 25 years. The lessee is part of the Norfolk Southern Railway System and is its second largest operating unit. Total rental income from the railway lease was $19,324,000 in 2009 and $18,889,000 in 2008.

B. Government-wide and Fund Financial Statements

The government-wide financial statements (i.e., the statement of net assets and the statement of activities) report information on all of the nonfiduciary activities of the City. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.

61 The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.

Interfund receivables and payables between governmental and business type activities have been eliminated in the government-wide statement of net assets. These eliminations minimize the duplicating effect on assets and liabilities within the governmental and business type activities total column. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are charges between the city’s business type activities and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned.

Fund financial statements consist of a series of statements focusing on information about the City’s major governmental and proprietary funds. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.

C. Measurement Focus, Basis of Accounting and Financial Statement Presentation

The financial statements of the City of Cincinnati for 2009 are prepared in accordance with standards promulgated by the Governmental Accounting Standards Board (GASB). These standards include the effective pronouncements of the National Council on Governmental Accounting and the American Institute of Certified Public Accountants which are considered to be "generally accepted accounting principles" for state and local entities, until they are altered, amended, supplemented, revoked or superseded by a subsequent GASB pronouncement.

The City reports the following major governmental funds:

General Fund is the accounting entity in which all governmental activity, except that which is required to be accounted for in other funds, is accounted for. Its revenues consist primarily of taxes, intergovernmental shared revenues, charges for services, and investment income.

General Fund expenditures represent costs of general government, community development, public safety, public services, public health, parks and recreation, transportation and engineering, and other.

Capital Projects Fund is used primarily to account for resources designated to construct or acquire governmental fund capital assets. Such resources are derived principally from proceeds of general obligation debt, federal and state grants and City income tax (see Note 11). It is the City's policy to use the proceeds derived from the sale of bonds only for the capital improvement purpose detailed in the bond-authorizing ordinance and in accordance with state statutes. Any premium and accrued interest received from the sale of bonds is deposited into the Debt Service Fund.

62 Debt Service Fund accounts for the resources accumulated and payments made for principal and interest on general obligation debt and capital lease payments of the governmental funds.

The City reports the following major proprietary fund:

Water Works Fund accounts for all activities of the City’s Water Works Department. The City collects, purifies, and sells water to Greater Cincinnati Area residents. Revenues consist primarily of user charges.

The City reports the following fund types:

Internal Service Funds account for reproduction, printing and stores; automotive repairs and maintenance services; land sales and leasing; employee medical costs; workers’ compensation; and data processing services to other departments or agencies of the City, or to other governments. Internal service funds are used to account for the financing of goods or services provided by one department or agency to another department or agencies of the government, generally on a cost reimbursement basis.

Pension Trust Fund – This fund is used to account for the revenues and expenses of the City’s Retirement System, which is a multiple-employer defined benefit pension plan. This fund accounts for both the pension benefits and the post-employment healthcare benefits.

Investment Trust Fund – This fund is used to account for the Metropolitan Sewer District Fund portion of the City’s pool of cash and investments.

Agency Funds – These funds are used to account for assets held by the City in a fiduciary capacity. Agency funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. The assets held by the City include towing and storing charges for impounded vehicles, entertainment facilities deposits, transportation and engineering specific purpose monies, Metropolitan Sewer District monies and the Convention Facility Authority monies.

MeasurementU Focus U

Except for budgetary purposes, the basis of accounting used by the City conforms to generally accepted accounting principles (GAAP) in the United States of America as applicable to governmental units. The accounting and financial reporting treatment applied to a fund is determined by its measurement focus.

The government-wide and proprietary funds financial statements are reported using the economic resources measurement focus. The government-wide and proprietary funds financial statements are reported using the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Nonexchange transactions, in which the City gives (or receives) value without directly receiving (or giving) equal value in exchange, include income taxes, property taxes, grants, shared revenues, and donations. On an accrual basis, revenue from income taxes is recognized in the period in which the taxpayer’s liability occurs and revenue from property taxes is recognized in the fiscal year for which the taxes are levied. On an accrual basis, revenue in the form of shared revenue is recognized when the provider government recognizes its liability to the City. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.

Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized in the accounting period in which they

63 become both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within sixty days of the end of the current fiscal period. Expenditures generally are recorded when the related liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Inventories of materials and supplies may be considered expenditures either when purchased or when used; and prepaid expense items may be considered expenditures either when paid for or when consumed. Proceeds of general long-term debt are reported as other financing sources.

Income taxes, delinquent property taxes, liquor permits, fines, local government fund, gasoline tax, and motor vehicle license fees for the current and prior periods are determined to be susceptible to accrual and are recognized as revenue in the current accounting period. All other major revenues of governmental funds are determined not to meet the criteria of either being measurable or available.

The proprietary fund type statements are prepared utilizing the flow of economic resources measurement focus and the accrual basis of accounting for revenues, which are recognized when they are earned, and for expenses, which are recognized when they are incurred. Unbilled service receivables are recognized by proprietary funds when the services are provided.

The fiduciary fund types recognize revenue and expenditures/expenses on a basis consistent with the fund's accounting measurement objective. The pension trust fund and the mixed investment pool statements are prepared utilizing the flow of economic resources measurement focus and the accrual basis of accounting. The pension trust fund accounts for both the pension benefits and the employees’ post-employment benefits. Agency funds do not have a measurement focus. Their financial statements are prepared utilizing the accrual basis of accounting.

Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both the government-wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of following subsequent private-sector guidance for their business-type activities and enterprise funds, subject to this same limitation. The City has elected not to follow subsequent private-sector guidance.

OtherU Accounting Policies

A. Investments - The investments of the City (excluding the City of Cincinnati's Retirement System, (see Note 2)) are comprised primarily of time deposits and other securities guaranteed by the United States Government or its agencies and are stated at fair value based on quoted market prices.

B. Inventories - Inventories are valued at cost using either the moving weighted average or the first-in, first-out method. Inventories in the governmental funds and the proprietary funds are recorded using the consumption method whereby inventories are recorded as expenditures or expenses when they are used.

C. Insurance - The City maintains a comprehensive all-risk property insurance program that provides insurance coverage for approximately $1,542,349,000 in property values. In addition, certain enterprise funds carry insurance coverage for specific purposes as determined by management. An estimated liability for uninsured losses is reported as required by Governmental Accounting Standards Board Statement 10 - Accounting and Financial Reporting for Risk Financing and Related Insurance Issues. State law authorizes

64 the issuance of judgment bonds to settle claims. The City's available legal debt margin of $99,769,000 at December 31, 2009, is considered adequate for catastrophic loss coverage.

D. Inter-Fund Transactions - During the course of normal operations, the City has numerous transactions between funds including expenditures/expenses, advances and transfers of resources to provide services, construct assets and service debt. The governmental and proprietary fund type financial statements generally reflect such transactions as transfers or advances. The internal service funds record charges for services to City departments as operating revenue. All City funds record these payments to the internal service funds as operating expenditures/expenses. The proprietary funds record operating subsidies as other income whereas the fund paying the subsidy records it as either an expenditure/expense or transfer. Transfers are intended to reallocate money permanently from one fund to another. Advances represent the long-term portion of loans between funds. Inter-fund services provided and used are accounted for as revenues, expenditures, or expenses in the funds involved. The General Fund provides administrative services to enterprise funds. Based on an internal cost allocation plan certain costs initially borne by the General Fund are then billed as indirect charges to other funds of the City. The amounts charged for those services are treated as revenue to the General Fund and as operating expenses in the enterprise funds and as program expenses for individual functions and activities.

E. Capital Assets -Capital assets which include property, plant and equipment, and infrastructure (e. g. roads, streets, bridges and retaining walls) are reported in the applicable governmental or business-type activity columns in the government-wide financial statements. The City defines capital assets as assets with an individual cost of $5,000 or more ($100,000 for governmental infrastructure assets) and an estimated useful life in excess of one year. Such assets are capitalized at historical cost, or estimated values that approximate historical cost if purchased or constructed. Pursuant to the implementation of GASB No. 34, the historical cost of infrastructure assets (retroactive to January 1, 1980) are included as part of the governmental capital assets reported in the government-wide statement. Thus, the depreciated value of construction cost for streets, bridges and retaining walls is reported. Donated capital assets are recorded at estimated fair market value at the time of donation.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized.

Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed.

Property, plant, and equipment of the City are depreciated using the straight-line method over the following estimated useful lives:

Water Mains 100 years Buildings and Improvements 25-70 years Infrastructure 15-25 years Machinery and Equipment 5-40 years Automotive Equipment 3-20 years

F. Deferred Revenues - The City reports deferred revenue on its governmental funds balance sheet. Deferred revenues arise when a potential revenue does not meet both the "measurable" and "available" criteria for recognition in the current period. Certain intergovernmental receivables, uncollected assessments, miscellaneous receivables, property taxes and income taxes not meeting the availability criteria have been deferred and will be realized in a subsequent period in the governmental funds.

65 G. Grants and Other Intergovernmental Revenues - The proprietary fund types recognize the federal reimbursement-type capital grants as intergovernmental receivables and capital contributions as the related expenses are incurred. All other federal reimbursement-type grants are recorded as intergovernmental receivables and revenues when the related expenditures are incurred. On an accrual basis, revenue in the form of shared revenue is recognized when the provider government recognizes its liability to the City.

H. Operating Revenues and Expenses - The City, in its proprietary funds, distinguishes operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the City’s enterprise funds and internal service funds are charges to customers for sales and services. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation of capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

I. Capitalization of Interest - Interest is capitalized by the City in proprietary fund types when it is determined to be material. The City capitalizes interest in accordance with FASB Guidance. This Guidance requires that the interest cost capitalized during construction be reduced by interest income earned on investments of the bond proceeds from the date of the borrowing until the assets constructed from the bond proceeds are ready for their intended use.

J. Statement of Cash Flows - For purposes of the statement of cash flows, the proprietary funds consider all highly liquid investments held by trustees, with a maturity of three months or less when purchased, to be cash equivalents. In addition, all cash and temporary investments with the City Treasurer are also considered to be cash equivalents since they are available to the proprietary funds on demand. The temporary investments primarily consist of certificates of deposit and U. S. Treasury securities that have maturities of up to two years.

K. Debt Issuance Costs, Premiums and Discounts – Debt Issuance costs, premiums and discounts are capitalized and amortized over the term of the bond.

L. Pronouncements Effective for the 2009 Financial Statements – With this financial report the City has changed its financial reporting to comply with Governmental Accounting Standards Board (GASB) Statement Number 52, Land and Other Real Estate Held as Investments by Endowments that was issued in November 2007. This statement is effective for fiscal periods beginning after June 15, 2008. This statement affects financial reporting for endowments, requiring that land and other real estate be shown at fair value rather than historical cost and requiring that changes in fair value be reported as investment income.

Governmental Accounting Standards Board (GASB) Statement Number 54, Fund Balance Reporting and Governmental Fund Type Definitions was issued in March 2009. This statement is effective for fiscal periods beginning after June 15, 2010. Earlier application is encouraged. The objective of this statement is to enhance the usefulness of fund balance information by providing clearer fund balance classifications that can be more consistently applied and by clarifying the existing governmental fund type definitions.

66 Governmental Accounting Standards Board (GASB) Statement Number 55, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments was issued in March 2009. This statement is effective upon issuance. The objective of this statement is to incorporate the hierarchy of generally accepted accounting principles (GAAP) for state and local governments into the Governmental Accounting Standards Board’s (GASB) authoritative literature.

Governmental Accounting Standards Board (GASB) Statement Number 56, Codification of Accounting and Financial Reporting Guidance Contained in the AICPA Statements on Auditing Standards was issued in March 2009. This statement is effective upon issuance. The objective of this Statement is to incorporate into the Governmental Accounting Standards Board’s (GASB) authoritative literature certain accounting and financial reporting guidance presented in the American Institute of Certified Public Accountants’ Statements on Auditing Standards.

M. Pronouncements Issued But Not Yet Effective – Governmental Accounting Standards Board (GASB) Statement Number 51, Accounting and Financial Reporting for Intangible Assets was issued in June 2007. This statement is effective for fiscal periods beginning after June 15, 2009. This statement defines intangible assets and states the criteria for their inclusion as capital assets for accounting and financial reporting purposes.

Governmental Accounting Standards Board (GASB) Statement Number 53, Accounting and Financial Reporting for Derivative Instruments was issued in June 2008. This statement is effective for fiscal periods beginning after June 15, 2009. Earlier application is encouraged. This statement addresses the recognition, measurement, and disclosure of information regarding derivative instruments entered into by state and local governments.

Governmental Accounting Standards Board (GASB) Statement Number 57, OPEBT Measurements by

Agent Employers and Agent Multiple-Employer Plans was issued in December, 2009. TheT provisions related to the use and reporting of the alternative measurement method are effective immediately. The provisions related to the frequency and timing of measurements are effective for actuarial valuations first used to report funded status information in OPEB plan financial statements for periods beginning after June 15, 2011. The objective of this Statement is to address issues related to the use of the alternative measurement method and the frequency and timing of measurements by employers that participate in agent multiple-employer other postemployment benefit (OPEB) plans (that is, agent employers).

Governmental Accounting Standards Board (GASB) Statement Number 58, AccountT ing and Financial

Reporting for Chapter 9 Bankruptcies was issued in December, 2009. This statement is effective forT periods beginning after June 15, 2009. Retroactive application is required for all prior periods presented during which a government was in bankruptcy. The objective of this Statement is to provide accounting and financial reporting guidance for governments that have petitioned for protection from creditors by filing for bankruptcy under Chapter 9 of the United States Bankruptcy Code. It requires governments to remeasure liabilities that are adjusted in bankruptcy when the bankruptcy court confirms (that is, approves) a new payment plan.

N. Working Capital Reserve - City Council established standards for a minimum working capital reserve account in 1984 to assure a strong financial position and to protect Cincinnati's general obligation bond rating during periods of fiscal stress. The policy called for achievement of a minimum reserve level, for emergency needs of a catastrophic nature, of no less than 5% or more than 8% of general operating revenues by December 31, 1986. The targeted year-end reserve level was achieved in January of each year

67 1985 through 2009. The working capital reserve for 2009 was $26,030,000 and is included in the Unassigned Fund Balance as a Working Capital Reserve in the General Fund. The City is a chartered government and the working capital reserve, as established, is allowed by the charter.

O. Restricted resources - Bond funds and other similar restricted resources are assumed to be expended before non-restricted resources in paying for capital projects of both the governmental funds and the proprietary funds.

P. Liability for Compensated Absences – City Employees are awarded sick, vacation and compensatory time as determined by union contractual agreements and personnel policies. Compensatory time and vacation time are paid out in full upon termination and are expensed in the year earned. Sick leave is paid out at various levels upon termination. The liability for sick leave is computed with the Termination Payment Method using a historical average of total years worked and total amount paid. The current portion of the liability is an average of the annual expenditures.

2. DEPOSITS WITH FINANCIAL INSTITUTIONS AND INVESTMENTS

The City of Cincinnati combines the cash balances in individual funds to form a pool of cash and investments. Each fund reports its respective equity in City Treasury cash as an element of its resources. In addition, several funds separately hold cash and equivalents and investments, which are appropriately identified, in the government-wide Statement of Net Assets of the City. Earnings from the pooled cash and investments are allocated on a quarterly basis to eligible funds based on month-end equity balances. The data presented in the accompanying financial statements is for the City of Cincinnati as a whole.

Deposits

At year-end the carrying amount of the City's deposits, including certificates of deposit with various financial institutions was $440,814,000 and the bank balance was $458,253,000. The entire bank balance is held in the name of the City and is collateralized either by federal depository insurance or securities pledged as collateral and segregated by the Federal Reserve Bank in a pledge account. The collateral is held by the City's agent in the City's name; it cannot be released by the Federal Reserve Bank without the City's approval.

Statutes specify that the City Treasurer require institutions designated as a public depository to pledge and to deposit with the Treasurer's office, as security for the payment of all public monies to be deposited in the public depository during the period of designation, eligible securities of an aggregate market value equal to the excess of the amount of public monies that are at the time so deposited over and above such portion or amount of such money as is at such time insured by the Federal Deposit Insurance Corporation, or by any other agency or instrumentality of the federal government. As an alternative, the City Treasurer may require such institution to deposit with him surety company bonds which, when executed, shall be for an amount equal to such excess amount.

Excluded from these amounts are deposits held by the City’s Retirement System for which the year-end book balance was $62,593,000. The year-end bank balance was $22,855,000 and the cash balance was $18,602,000. The cash balance was held by the City Treasurer. The cash equivalents of $43,991,000 were held in money managers’ custodial accounts at the Bank of New York at year-end and are not subject to the same insurance and collateralization requirements as the City’s deposits and are uncollateralized.

68 Investments

The fair value of investments for the City at December 31, 2009 was $645,944,000. These investments include $72,165,000 in Money Market Funds, $362,754,000 in U. S. Treasury Securities, $209,882,000 in U. S. Government pass-through mortgage backed securities, $272,000 in Bond Mutual Funds, and $871,000 in Equity Securities. The City is legally authorized to invest in obligations of the U.S. Treasury, federal agencies or instrumentalities, obligations of the State of Ohio and its political subdivisions and repurchase agreements. All investments of the City of Cincinnati are insured or registered, or are securities held bythe City or its agent in the City's name. The City Treasurer may enter into a repurchase agreement of United States Treasuryobligations or other obligations for which the full faith and credit of the United States is pledged for the payment of principal and interest, or obligations or securities issued by any federal government agency. The City has not used reverse repurchase agreements or derivatives as investment instruments.

Excluded from the City’s investments discussed above are assets held in trust by the City’s Retirement System and the Park Board, which includes the Special Revenue Parks, Special Revenue Bettman Nature Center, and Permanent Park Board Funds. The fair value of investments for these funds at December 31, 2009 was $1,955,598,000. These investments include $49,463,000 in Government Agencies and Bonds, $72,350,000 in Government pass-through mortgage backed securities, $212,452,000 in Corporate Fixed Income, $417,960,000 in Venture Capital, $1,060,068,000 in Equity Securities, $6,254,000 in State and Local Obligations, $2,703,000 in Other Assets, $104,246,000 in Real Estate Investments, $9,868,000 in Derivatives, and $20,234,000 in other bonds. In those cases where resources are maintained in trust, the authority for investment of the property rests with either the trust agreement or local ordinance. Investments of the City of Cincinnati Retirement System are, by ordinance, subject to certain terms and limitations. These limitations do not applyto investments in securities of the City and federal government or their agencies. Investments of the City of Cincinnati Retirement System and Park Board are uninsured, with securities held by the counterparty, or by its trust department or agent but not in the City’s name. The investment in Venture Capital is not considered an investment in a security for purposes of credit risk classification since it is not evidenced by securities that exist in physical or book entry form.

Investment Policy and Risk

The investment policy and risk will be discussed in four categories: 1) the Cityinvestment policy, which includes the General Fund, Debt Service Fund, Capital Project Fund, Water Works Fund (an Enterprise Fund), and the Metropolitan Sewer District (an Agency Fund), 2) the Permanent Funds except for the Park Board Fund, 3) the Park Board, which includes the Special Revenue Parks, Special Revenue Bettman Nature Center and Permanent Park Board Funds and 4) the City of Cincinnati’s Retirement System’s Pension Trust Fund.

A. City Investment Policy

The City’s foremost objective of the investment policy for the funds that are pooled and deposited in the General Bank Depository Account and other accounts authorized by the City Treasurer is safety of principal. The investment policy minimizes credit risk by limiting investments to the safest types of securities, pre-qualifying the financial institutions with which the City will do business, and diversifying investments to minimize potential losses.

Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. Interest rate risk is reduced by structuring the portfolio to mature to meet cash requirements for ongoing operations in order to avoid the need to sell securities prior to maturity and by investing operating funds in shorter-term securities.

At December 31, 2009, the City had the following investments held by the CityTreasurer which were exposed to interest rate risk (amounts in thousands):

69 Investment Maturities (in years) Investment Type Fair Value Less Than 1 1 to 5 6 to 10 More than 10 U.S. Treasury Obligations $ 362,754 $ 276,348 $ 60,598 $ 17,858 $ 7,950 Mortgage Backed Government Pass-Through 209,882 9,035 196,251 4,596

$ 572,636 $ 285,383 $ 256,849 $ 22,454 $ 7,950

Currently, the investment policy limits the investments to: 1) obligations issued by the United States Treasury, 2) obligations issued by a federal government agency or instrumentality, 3) certificates of deposits, 4) no-load money market mutual funds which invest in 1), 2), or 3) above, 5) the Ohio subdivision’s fund (STAR Ohio), 6) repurchase agreements, or 7) obligations of the State of Ohio or of a political subdivision of the state with at least a AA rating. These investments do not expose the City to foreign currency risk. Therefore, the City does not have a foreign currency risk policy.

Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. Credit ratings indicate the degree of credit risk for an investment. At December 31, 2009 the City held the following investments (amounts in thousands):

Total A-/A3 Full Fair and Not Faith & Investment Type Value Above Rated Credit U.S. Treasury Obligations $ 362,754 $ 199,422 $ 8,959 $ 154,373 Mortgage Backed Government Pass-Through 209,882 209,882

$ 572,636 $ 409,304 $ 8,959 $ 154,373

Custodial credit risk is the risk that in the event of a failure of a depository financial institution or counterparty to a transaction, the City would be unable to recover the value of an investment or collateral securities. The custodial credit risk policy is discussed in the Deposits section above. The City requires the certificates of deposit to be backed by collateral or surety bond with an aggregate market value of one hundred two percent of the City’s deposits and investments including accrued interest. Repurchase agreements require collateral. The release of collateral requires the approval of the City Treasurer.

Concentration of credit risk is the risk of loss attributed to the magnitude of the City’s investment in a single issuer. At December 31, 2009 the City did not have more than five percent of total investments with a single issuer.

B. Permanent Funds

The Permanent Funds (excluding the Park Board Fund) do not have a written investment policy. Each fund has a separate trust agreement, which limits the activity of the fund. At December 31, 2009, total investments were $1,143,000. The Permanent Funds do not have an investment policy for interest rate risk, credit risk, custodial credit risk, concentration of credit risk, or foreign currency risk. Their investments consist of equity securities with a fair value of $871,000, and bond mutual funds with a fair value of $272,000. Credit ratings and maturity information was not available for the investments in bond mutual funds.

C. Park Board

70 The Park Board Fund investments goals are to generate capital growth for long-term usage and provide operating income to the respective projects and operations. The fund has established asset allocation ranges. For equities that range is seventy to ninety percent. The bond range is ten to thirty percent, and the cash range is zero to three percent. Each bond investment must have a minimum credit rating of A byStandard and Poor’s and A by Moody’s. Other than these limitations on investments, the Park Board Fund does not have an established policy for interest rate risk, credit risk, concentration of credit risk, custodial credit risk, or foreign currency risk.

At December 31, 2009 the Park Board had total investments with a fair value of $10,417,000 which included equity securities with a fair value of $5,225,000, and bond mutual funds with a fair value of $704,000. The remaining $4,488,000 in investments is identified in the chart below and includes cash equivalents of $497,000.

The following investments were exposed to interest rate risk (amounts in thousands):

Investment Maturities (in years) Investment Type Fair Value Less Than 1 1 to 5 U.S. Treasury Obligations $ 1,307 $ 1,253 $ 54 U.S. Government Agency 26 26 Mortgage Backed Government Pass-Through 2,198 1,621 577 Corporate Bonds 957 50 907 Total $ 4,488 $ 2,924 $ 1,564

The following chart provides information utilized in determining credit rate risk (amounts in thousands):

Total A-/A3 Full Fair and Faith & Investment Type Value Above Credit U.S. Government Treasury $ 1,307 $ 810 $ 497 U.S. Government Agency 26 26 Mortgage Backed Government Pass-Through 2,198 2,198 Corporate Bonds 957 957 Total $ 4,488 $ 3,991 $ 497

D. City Retirement

The City of Cincinnati Retirement System’s Pension Trust Fund primary investment return objectives are to preserve the safety of principal, earn the highest possible total return consistent with prudent levels of risk, and create a stream of investment returns to insure the systematic and adequate funding of actuarially determined benefits through contributions and professional management of the System assets. The System has established asset allocation goals with acceptable variances specific to the type of investment. The total fixed income target allocation is 17% with a variance of 4%. The fixed income investments are divided between core bonds (target allocation of 12% with a variance of 2%) and high yield bonds (target allocation of 5% with a variance of 2%). The remaining asset target allocations are as follows: domestic equity 29.5% with a range of 20% to 40%, international equity 21% with a variance of 5%, real estate equity 7.5% with a variance of 3%, infrastructure 5% with a variance of 2%, long-short equity 15% with a variance of 5%, and private equity 5% with a variance of 5%.

71 InterestU Rate Risk The interest rate risk is addressed by guidelines that require the weighted duration of the investments to be within a range of the duration of a benchmark index. For the core bonds the average effective duration may not vary more than 25%. For the high yield bonds the average duration may not vary more than 30%. At December 31, 2009, the System had the following investments subject to interest rate risk (amounts in thousands):

Investment Maturities (in years) Investment Type Fair Value Less Than 1 1 to 5 6 to 10 More than 10 Fixed Income Investments Government Fixed Income Government Agencies $ 13,371 $ 6,957 $ 3,684 $ 2,730 Government Bonds 33,383 6,875 11,107 15,401 Other Government Fixed Income 1,355 1,287 68 Government Assets and Mortgage Backed Government National Mortgage Assoc 1,114 24 1,090 Federal Home Loan Mortgage Corp 3,891 $ 222 258 217 3,194 Federal National Mortgage Assoc 25,298 546 1,086 23,666 Collateralized Mortgage Obligations 39,441 514 1,103 4,930 32,894 Other Government Mortgage Backed 409 409 Corporate Fixed Income Asset Backed Securities 46,880 1,194 8,813 1,331 35,542 Corporate Bonds 171,341 7,409 110,094 35,228 18,610 State and Local Obligations 6,254 679 5,575 Other Fixed Income Private Placements 20,643 2,388 7,990 6,714 3,551 Miscellaneous Other Fixed Income 7,798 5,819 992 987 $ 371,178 $ 17,546 $ 144,939 $ 65,453 $ 143,240 The above maturity chart includes investments with a fair value of $15,617,000 which were reclassified as cash equivalents in the Pension Trust financial statements.

ConcentrationU of Credit Risk The concentration of credit risk is minimized by the diversification policy, which requires the assets to be allocated across major asset classes and be diversified broadly within each asset class. The investment firm is required to notify the System when, in aggregate as a firm, the organization owns more than 10% of the outstanding shares in a single stock. Also, within the fixed investment asset class each of the investment managers may not allow a single issuer to comprise more than 5% of the portfolio’s market value. For the domestic equity and the international equity, no single issuer shall comprise more than 10% of the portfolio’s market value for each investment manager. To further limit the concentration of credit risk, the domestic equity investment managers are not permitted for the aggregate position within each equity manager’s portfolio to exceed 1% of the fair market value of the outstanding stock in any company. For the international equity investment managers the limit is 1.5%.

72 CreditU Risk In order to reduce credit risk, the System requires that 90% of the core bonds are of a high quality investment grade security. The remaining 10% may be invested in below investment grade securities, defined as investments with a middle rating below BBB- (S&P), Baa3 (Moody’s), or BBB- (Fitch). The high yield bonds overall portfolio average quality rating should be not less than B based upon the rating of at least two of the three rating agencies (S&P, Moody’s, and Fitch). The following chart provides the investments held by the System summarized by credit rating at December 31, 2009 (amounts in thousands):

Total A-/A3 BBB-/Baa3 B-/B3 Fair and to to C/C to Not Investment Type Value Above BBB+/Baa1 BB+/Ba1 CCC/Caa Rated Fixed Income Investments Government Fixed Income Government Agencies $ 13,371 $ 9,462 $ 3,909 Government Bonds 33,383 13,061 20,322 Other Government Fixed Income 1,355 1,287 $ 68 Government Assets and Mortgage Backed Government National Mortgage Assoc 1,114 1,114 Federal Home Loan Mortgage Corp 3,891 3,891 Federal National Mortgage Assoc 25,298 24 25,274 Collateralized Mortgage Obligations 39,441 2,342 37,099 Other Government Mortgage Backed 409 409 Corporate Fixed Income Asset Backed Securities 46,880 30,319 332 $ 2,139 $ 155 13,935 Corporate Bonds 171,341 50,047 15,844 70,736 25,910 8,804 State and Local Obligations 6,254 3,017 3,237 Other Fixed Income Private Placements 20,643 15,415 1,785 1,822 501 1,120 Miscellaneous Other Fixed Income 7,798 1,979 5,819 Total $ 371,178 $ 127,362 $ 18,029 $ 74,697 $ 26,566 $ 124,524

The above credit rating chart includes investments with a fair value of $15,617,000 which were reclassified as cash equivalents in the Pension Trust financial statements.

ForeignU Currency Risk Foreign currency risk is the risk that changes in exchange rates will adversely affect the fair value of an investments or a deposit. The System’s target allocation for international equities is 21% of the total investment assets with 15% in core equities and 6% in small cap/emerging market equities. The international equity managers may hold up to 5% of its portfolio in a money market or cash. Currency hedging which includes forward currency contracts and cross currency hedging, are permitted for defensive purposes. The System’s exposure to foreign currency risk at December 31, 2009 is as follows (amounts in thousands):

73 Currency Fair Value Fixed Income Equity Forward Contracts Derivatives Cash Australian Dollar $ 19,492 $ 19,398 $ 85 $ 4 $ 5 Brazilian Real 826 813 13 British Pound Sterling 48,647 48,925 (278) Canadian Dollar 4,658 $ 1,316 4,534 (1,419) (13) 240 Euro Currency 83,275 9,103 83,286 (9,938) (8) 832 Hong Kong Dollar 10,620 10,620 Japanese Yen 52,185 52,447 (262) Malaysian Ringgit 199 199 New Taiwan Dollar 1,631 1,575 49 7 New Zealand Dollar 1,022 1,022 Renminbi Yuan 345 345 Singapore Dollar 9,086 9,038 48 South African Rand 5,667 5,666 1 South Korean Won 307 307 Swedish Krona 3,782 3,782 Swiss Franc 18,279 18,279 Total $ 260,021 $ 10,419 $ 258,572 $ (10,051) $ (4) $ 1,085

CustodialU Credit Risk As for custodial credit risk, the fund only requires collateral for their securities lending program as discussed in the Securities Lending section of this footnote.

Securities Lending

City statutes and board of trustee policies permit the City of Cincinnati Retirement System to use investments of the plan to enter into securities lending transactions – loans of securities to broker-dealers and other entities for collateral with a simultaneous agreement to return the collateral for the same security in the future. Securities are loaned in exchange for collateral that may include cash, U.S. government securities and irrevocable letters of credit. U.S. securities are loaned in exchange for collateral valued at 102% of the market value of the securities plus any accrued interest. Non-U.S. securities are loaned in exchange for collateral valued at 105% of the market value of the securities plus any accrued interest. Collateral cannot be pledged or sold unless the borrower defaults. The borrower is required to pay to the Lender the equivalent of all interest and dividends that are paid by the issuer during the term of the loan. All security loans can be terminated on demand by either the lender or the borrower, although the average term of the System’s overall loans was 17 days for the year ended December 31, 2009. Cash collateral is invested in a short-term investment pool, which had an average weighted maturity of 1 day as of December 31, 2009. Cash collateral may also be invested separately in “term loans”, in which the maturity of the term loan is matched to either the maturity of the cash collateral invested or the interest rate reset of the cash collateral invested. These loans have rights of substitution and securities can be recalled on demand. As of December 31, 2009, there were no violations of legal or contractual provisions, no borrower or lending agent default and no losses known to the securities lending agent. There are no dividends or coupon payments owed on the securities lent.

The following represents the balances relating to the securities lending transactions at the financial statement date (amounts in thousands):

74 Fair Value of Cash Collateral Secuties Lent Underlying Received/Securities Securities Collateral Value Lent for Cash Collateral: U.S. Government $ 16,663 $ 17,006 U.S. Agencies 7,280 7,430 U.S. Corporate Fixed Income 23,507 24,079 U.S. Equities 105,393 109,027 Total $ 152,843 $ 157,542

The following maturity chart for securities lending collateral provides information pertinent to interest rate risk (amounts in thousands):

Investment Maturities (in years) Asset class Less Than 1 1 to 5 More than 10 Total Asset Backed Security $ 22,563 $ 1,292 $ 5,230 $ 29,085 Certificate of Deposit Float 8,104 8,104 Corporate Floating Rate 43,907 43,907 Reverse Repurchase Agreements 54,753 54,753 Total $ 129,327 $ 1,292 $ 5,230 $ 135,849 In order to determine credit rate risk for the securities lending collateral, the following chart is useful (amounts in thousands):

Fair A-/A3 BBB-/Baa3 B-/B3 to C/C to A-3/P-3 to Not Investment Type Value and Above to BBB+/Baa1 BB+/Ba1 CCC/Caa A-2/P-2 Rated Asset Backed Security $ 29,085 $ 22,562 $ 798 $ 5,205 $ 520 $ Certificate of Deposit Float 8,104 $ 8,104 Corporate Floating Rate 43,907 40,007 3,900 Reverse Repurchase Agreements 54,753 54,753 Total $ 135,849 $ 62,569 $ 798 $ 5,205 $ 520 $ 8,104 $ 58,653

Derivatives

Derivatives are generally defined as contracts whose value depend on, or derive from, the value of an underlying asset, reference rate, or index. The retirement system enters into certain derivative financial instruments, primarily to enhance the performance and reduce the volatility of the portfolio. It purchases S&P 500 futures contracts to gain exposure to the U.S. equity market, fixed income futures contracts and options to manage interest rate risk, and foreign exchange contracts are used occasionally to hedge foreign currencyexposure. The retirement system’s fixed income managers are authorized to invest in mortgage-backed securities (MBS), commercial mortgage-backed securities (CMB), collateralized mortgage obligations (CMO) and asset-backed securities (ABS). MBS securities are issued by government agencies and instrumentalities such as the FHA, FNMA, GNMA, FHLMC, while CMB and CMO securities are issued by non-government corporations. ABS securities are supported by loans, which are secured by first residential mortgages, home equitymortgages, auto loans, credit card receivables, etc.

The following derivative positions were held at December 31, 2009: 1.) Futures contracts settling March 19, 2010 to buy S&P 500 securities with a notional value of approximately $6.5 million. 2.) Futures contracts settling March 19, 2010 to buy S&P 400 Midcap securities with a notional value of approximately $1.2 million. 3.) Futures contracts settling March 19, 2010 to buy Russell 2000 securities with a notional value of approximately $2.9 million.

75 4.) Futures contracts settling March 19, 2010 to buy MSCI EAFE securities with a notional value of approximately $8.5 million. 5.) Futures contracts settling March 31, 2010 to buy 5 year U.S. Treasury Note securities with a notional value of approximately $0.8 million. 6.) Futures contracts settling March 22, 2010 to buy 10 year U.S. Treasury Note securities with a notional value of approximately $0.2 million. 7.) Futures contracts settling March 22, 2010 to buy 30 year U.S. Treasury Bond securities with a notional value of approximately $0.2 million.

3. MIXED INVESTMENT POOL

On April 10, 1968, the Board of County Commissioners of Hamilton County and the City of Cincinnati consolidated all County and City sanitary sewer facilities, under the direction and control of the Board of County Commissioners and the management and operation of the City. The cash balance in the fund established for this purpose, the Metropolitan Sewer District fund (MSD), is combined with the City’s pool of cash and investments. For the purposes of financial reporting, the MSD portion of the City’s pool of cash and investments is reported as an Investment Trust Fund. Assets in the pool are reported at fair value based on quoted market prices. The pool is not subject to regulatory oversight. Fair value amounts are determined at year-end. The City has not provided or obtained any legally binding guarantees to support the value of the Mixed Investment Pool. MSD is required by Chapter 301 of the Cincinnati Municipal Code to participate in the Mixed Investment Pool. The method used to determine participants’ shares sold and redeemed is a proration based upon the equity held in City Treasury cash. These amounts increase and decrease based upon the change in the equity balance. This same method is used to report the investments. Disclosures required by GASB Statement 3 are discussed in Note 2.

Summary by major investment classification:

(Amounts in Thousands) Fair Interest Rates Maturity Description Cost Value Dates

Money Market Fund $ 9,116 $ 9,116 Certificates of Deposit 322,534 322,534 1.31% to 4.65% 1/5/10 to 03/16/13 U. S. Treasury Notes 44,955 44,744 0.875% to 5.125% 4/30/10 to 11/30/14 FHLB/FNMA/FHLB/FHLMC Securities 152,562 152,373 0.875% to 5.8% 4/29/11 to 12/30/14 Cash 5,097 5,097 Total $ 534,264 $ 533,864

The Mixed Investment Pool does not issue a separate report. The Mixed Investment Pool’s financial statements can be found below:

76 Mixed Investment Pool Statement of Net Assets As of December 31, 2009 (Amounts in Thousands)

Assets Equity in City Treasury $ 533,864

Net Assets Held in Trust for Internal Pool Participants $ 470,417 Held in Trust for External Pool Participant 63,447 Total Net Assets $ 533,864

Mixed Investment Pool Statement of Changes in Net Assets For the Year Ended December 31, 2009 (Amounts in Thousands)

Internal Participants External Participants Total Additions: Contributions: Participant Deposits $ 985,981 $ 471,753 $ 1,457,734

Investment earnings: Interest and dividends 14,862 2,031 16,893 Net appreciation in the fair value of investments (2,169) (285) (2,454) Total investment earnings 12,693 1,746 14,439 Total additions 998,674 473,499 1,472,173

Deductions: Distributions to Participants 1,008,695 486,995 1,495,690

Change in Net Assets (10,021) (13,496) (23,517) Net assets - beginning 480,438 76,943 557,381 Net assets - ending $ 470,417 $ 63,447 $ 533,864

4. COMMITMENTS

Convention Facilities Authority (CFA) - The CFA is an up to 11-member body corporate and politic, organized and existing under Chapter 351 of the Ohio Revised Code, as amended. The CFA issued bonds netting proceeds of $111,176,644 dated March 2, 2004 for the purpose of expanding and renovating the Convention Center in Cincinnati.

Pursuant to a Memorandum of Understanding between the City of Cincinnati (City) and Hamilton County (County), a cooperative agreement was reached between the City and the County and a Project Service Agreement between the City and the CFA. The City will: (i) own the Convention Center, (ii) be responsible for the operation and maintenance of the Convention Center and (iii) manage the design and construction of the expansion and renovation project. Construction began in May 2004 and was completed in June 2006.

77 In the financial plan for the convention center expansion and renovation the dedicated Transient Occupancy Tax (City) and Lodging Excise Tax (County) is expected to cover the outstanding debt service for senior ($62.9 million) and subordinate ($21.6 million) debt. Pursuant to the Memorandum of Understanding between the City, County and the CFA, the City has agreed to guarantee, subject to annual appropriation, the principal and interest on subordinate debt. The maximum annual debt service is $6,359,600 and has been reserved to guarantee the subordinate debt service.

Subject to annual appropriation, the City shall pay $1,000,000 (City Annual Contribution) to the Trustee of the CFA subject to the terms of the Cooperative Agreement. This contribution is pledged as an additional revenue source for the payment of the bonds. The City appropriated an amount sufficient to pay the City Annual Contribution for 2009.

The Banks – In November 2007, the City of Cincinnati and Hamilton County approved a series of agreements to develop The Banks on the City’s central riverfront. The City has authorized $15,000,000 in general obligation bonds or notes to be issued for Phase I of The Banks project. Phase I of the project, which began in Spring 2008, will consist of infrastructure improvements, parking garages, apartments, retail, office space and a 40-acre riverfront park. Phase I is projected to be complete in 2011.

Uptown Consortium – The 3000 Vine Street LLC (Developer) with its partner, the Uptown Consortium have began work on constructing a 209-car public parking garage, an 80,000-square-foot, 132 room Hampton Inn & Suites hotel and three commercial use out parcels. On December 17, 2008, City Council authorized the City Manager to enter into a $6.2 million 15 year installment sale agreement for the air lot that the garage would be built upon. The City would receive title to the garage for the duration of the agreement but would have to be returned either at the end of 15 years from the commencement date or if the loan was repaid early (whichever came first). The payments shall come from (1) net service payments collected from the real properties, (2) net service payments collected from the real properties in the project, and (3) net revenues from the operation of the project. Any Parking Revenue deficiency will not constitute an event of default. Any excess Project TIF Revenue will be retained to replenish the TIF District Revenues. The annual amounts of Parking Revenue available for installment payments shall not exceed the designated amounts and if actual amounts are in excess, at the option of Uptown Consortium, it may be used to prepay future installment payments (principal only) or reduce the amount due under the District Guarantee.

78 Encumbrances - Encumbrances are commitments to unfilled purchase orders or unfilled contracts. Funds have been committed to a specific order, but the goods or services have not been billed or received. The City has outstanding encumbrances at December 31, 2009 are as follows:

Summary of Encumbrances Outstanding (amounts in thousands)

General Capital Debt Non Major Fund Projects Service Governmental Total

General Government $ 3,919 $ 10 $ 30 $ 1,510 $ 5,469 Community Development 551 286 2,614 3,451 Parks & Recreation 536 823 1,359 Public Safety 1,762 1,844 3,606 Transportation & Engineering 124 317 441 Public Services 1,163 2,993 4,156 Public Health 50 2,451 2,501 Employee Benefits 1,694 16 1,710 Capital Outlay 38 53,220 31,308 84,566 Total $ 9,837 $ 53,516 $ 30 $ 43,876 $ 107,259

5. INTERFUND ASSETS/LIABILITIES

The composition of interfund balances as of December 31, 2009, is as follows:

DUE FROM/TO OTHER FUNDS (Amounts in Thousands) Due From Capital Debt Non Major Internal Water Works Nonmajor General Projects Service Governmental Service Enterprise Enterprise Fiduciary Fund Fund Fund Funds Funds Fund Funds Funds Total Due To General Fund $ - $ 8 $ 145 $ 1,757 $ 6 $ 24 $ 595 $ 2,535 Capital Projects Fund $ 691 535 384 493 555 674 122 3,454 Debt Service Fund 1 1 Non Major Governmental 616 4 55 845 1 1 269 1,791 Internal Service Fund 354 0 9 66 - 1 75 505 Water Works Fund 0 2 26 107 - 33 245 413 Nonmajor Enterprise Funds 1,085 1,007 722 891 536 949 229 36 5,455 Fiduciary Funds 2 - - 3,969 - - - 3,971

Total $ 2,748 $ 1,556 $ 1,106 $ 1,619 $ 7,835 $ 1,630 $ 410 $ 1,221 $ 18,125

Included in the balances above are the amounts related to a $10.8 million note issued by the City in 2009. These amounts are as follows: (Amounts in Thousands) Due From Due To

General Fund $ 1,652 Capital Projects Funds 1,542 $ 2,837 Debt Service Funds 1,106 Non Major Governmental Funds 1,315 Internal Service Funds 763 Water Works Funds 1,450 Convention Center Fund 38 Nonmajor Enterprise Funds 312 5,341 Fiduciary Funds Total $ 8,178 $ 8,178

79 The outstanding balances between funds result mainly from the time lag between the dates that (1) interfund goods and services are provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system, and (3) payments between funds are made.

ADVANCES TO/FROM OTHER FUNDS (Amounts in Thousands)

Advance From Other Funds Capital Nonmajor Internal General Projects Governmental Service Fund Fund Funds Funds Total Advance To Other Funds General Fund $ $ $ 125 $ 177 $ 302 Nonmajor Governmental Funds 521 991 - 1,512 Water Works Fund 50 50 Nonmajor Enterprise Funds 9,210 - 9,210 Internal Service Fund 1,214 1,214 Total $ 521 $ 10,424 $ 1,116 $ 227 $ 12,288

The major portion of the amounts payable relate to loans made for the completion of capital projects construction in progress. The remaining portion of the amounts payable relate to working capital loans made to funds upon their creation, none of this balance is scheduled to be collected in the subsequent year.

6. INTERFUND TRANSFERS

Interfund transfers for the year ended December 31, 2009, consisted of the following:

TRANSFERS IN/OUT (Amounts in Thousands) Transfers Out Capital Nonmajor Internal Nonmajor General Projects Debt Governmental Service Enterprise Fund Fund Service Funds Funds Funds Total Transfers In General Fund $ - $ 11,178 $ - $ - $ 176 $ - $ 11,354 Capital Projects Fund 364 - 49,415 619 1,063 - 51,461 Debt Service Fund 2,929 7,642 - 48 - 10,619 Nonmajor Governmental - 5,078 412 278 1,239 7,007 Internal Service Fund 0 1,843 80 - - 1,923 Nonmajor Enterprise Funds - 1,001 - 36 - 1,037 Total $ 3,293 $ 26,742 $ 49,415 $ 1,111 $ 1,601 $ 1,239 $ 83,401

Transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them, (2) move receipts restricted to debt service from the funds collecting the receipts to the debt service fund as debt service payments become due, and (3) use unrestricted revenues collected in the general fund to finance various programs accounted for in other funds in accordance with budgetary authorizations.

80 7. NET ASSETS / FUND BALANCE

Fund Balance Classifications

Fund balance is classified in five categories (1) Nonspendable, (2) Restricted, (3) Committed, (4) Assigned, and (5) Unassigned. Nonspendable fund balances include amounts that are not in nonspendable form or are legally required to remain intact. Restricted fund balances include amounts that have external restrictions by either grantors, debt covenants, laws or other governments. Committed fund balances include amounts that are committed to a specific purpose by council ordinance. Assigned fund balances include amounts that are constrained by management’s intent to be used for a specific purpose. Unassigned fund balance includes amounts that have not been assigned to any purpose. Fund expenditures and encumbrances are from restricted fund balance to the extent of the restricted fund revenue and followed by committed then assigned and unassigned fund balance.

Below are the fund balance classifications for the governmental funds at December 31, 2009:

General Capital Debt Non Major Total Fund Projects Service Governmental Governmental Fund Balances Nonspendable Inventory $ 5,330 $ 709 $ 470 $ 6,509 Advances and Petty Cash 158 158 Advances to Other Funds 302 1,512 1,814 In accordance with Trusts 1,465 1,465 Long Term Receivable Blue Ash Airport 16,504 16,504 Restricted Debt Service 65,419 65,419 Capital Projects 118,630 7,718 126,348 Public Transit 11,340 11,340 Public Safety 5,852 5,852 Parks and Recreation 15,617 15,617 Public Health 1,032 1,032 Other 18,270 18,270 Committed One Time Expenditure Reserve 2,415 2,415 Debt Service 8,961 8,961 Capital Projects 6,803 6,803 Cincinnati Public Schools 5,000 5,000 Police and Fire Pension Debt Service 2,687 2,687 Property Investment Reimbursement Agreements 2,783 2,783 Assigned Unrestricted Encumbrances 9,733 4,856 4,566 19,155 2010 Appropriations 24,873 24,873 Permanent Improvements 26,694 26,694 Public Safety 10,045 10,045 Parks and Recreation 4,138 4,138 Public Health 2,187 2,187 Other 3,651 3,651 Internal Service Funds 1,500 1,500

Unassigned Working Capital Reserve Fund 26,030 26,030 Other 9,184 (1,581) 7,603

Total Fund Balance $ 89,995 $ 183,157 $ 73,137 $ 78,564 $ 424,853

Working Capital Reserve Fund

City Council established standards for a minimum working capital reserve account in 1984 to assure a strong financial position and to protect Cincinnati’s general obligation bond rating during periods of fiscal stress. The policy called for achievement of a minimum reserve level, for emergency needs of a catastrophic nature, or no less than 5% or more than 8% of general operating revenues by December 31, 1986. The targeted year end

81 reserve level was achieved in January of each year 1985 through 2008. For 2009, the target reserve of $25.3 million (6.9% of 2009 estimated revenues) has already been achieved. Since conditions have not been specifically defined for its use, the $26 million is included in the unassigned fund balance for the general fund.

Minimum Fund Balance Policy

The City has three components as part of the minimum fund balance reserve: the General Fund carryover balance, the emergency reserve, and the Working Capital Reserve Fund balance. In prior years the Working Capital Reserve Fund was reported in the Capital Projects Fund balance. Beginning in 2009, it is reported as part of the General Fund balance. The 2009 estimated balance is $34,535 million which consists of $7.6 million estimated fund balance carry over, $927 thousand from the one time expenditure reserve, and $26 million working capital reserve. The City’s minimum fund balance policy is to maintain an unappropriated surplus equivalent to a 10% of General Fund revenues. General Fund revenues for 2009 were $341,751 million.

Included in the financial statements is an internal service fund with a net asset deficit as of December 31, 2009. The net asset deficit in the internal service fund of Self Insurance Medical ($1,708,000) is to be covered by future user charges. Also included in the financial statements is a non-major governmental fund with a net fund equity deficit as of December 31, 2009. The fund equity deficit in the Special Revenue Fund for Community Development ($1,581,000) is to be covered by reimbursement from a federal grant.

8. LEASES

CITY AS LESSEE

Operating Leases

The City has entered into various leases for property, equipment and office space. These leases are considered for accounting purposes to be operating leases. The total cost for such leases were $1198 for the year ended December 31, 2009. Future minimum lease payments are as follows:

(Amounts in Thousands) Year Amounts 2010 $ 896 2011 790 2012 675 2013 530 2014 226 Remaining Years 181 Total Future Minimum Rents $ 3,298

Capital Leases

The City has capitalized leases for the following property and equipment. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of their future minimum lease payments as of the inception date.

82 The assets acquired through capital leases are as follows:

(Amounts in Thousands) Governmental Business-Type Activities Activities

Leased Property/Equipment $ 1,674 $ 489 Less: Accumulated Depreciation 1,128 143 Total $ 546 $ 346

The following is a schedule of future minimum capital leases and the present value of the net minimum lease payments at December 31, 2009:

(Amounts in Thousands) Governmental Business-Type Year Activities Activities 2010 $ 125 $ 129 2011 119 72 2012 119 59 2013 116 29 2014 102 22 Total Minimum lease payments 581 311 Less: Amounts representing interest 80 27 Present value of net minimum lease payments $ 501 $ 284

CITY AS LESSOR

The City has entered into various contractual agreements for the rental of properties to various commercial enterprises, which are reported as operating leases for accounting purposes.

Future minimum rentals of non-cancelable operating leases as of December 31, 2009 areas follows:

(Amounts in Thousands) Governmental Business-Type Year Activities Activities

2010 $ 21,127 $ 745 2011 20,394 442 2012 20,170 267 2013 20,170 7 2014 19,953 7 Remaining years 212,770 51 Total Future Minimum Rental Payments $ 314,584 $ 1,519 Total Rentals for 2009: $ 20,964 $ 1,128

83 Amounts related to the operating lease as of December 31, 2009 are included in the financial statements of the following:

(Amounts in Thousands) Governmental Business Type Activities Activities

Land $ 2,505 $ 255 Buildings 3,328 1,759 Improvements 83,345 - Accumulated Depreciation 82,629 1,333 Depreciation Expense 1,318 54

Future minimum rentals of the railway line, recorded in Debt Service Fund, are assumed to equal the payments calculated for the current year. These minimum rentals are included in the Governmental Activities column.

EnterpriseU Funds U

The General Aviation rentals (included in business-type activities) do not include contingent rentals, which may be received on the basis of hours or usage in excess of stipulated minimums. Terms of the leases are normally on a five-year basis with renewal options not to exceed fourteen years.

The Parking Facilities has leased the Fountain Square North Parking Garage for a one-time payment of $7.5 million for a period of 40 years beginning in 2005. The revenue has been deposited into the Parking Facilities fund to offset cash flow losses from the operation of this garage.

GovernmentalU Capital Assets U

The City-owned railway line, the Cincinnati Southern Railway, is leased to the Cincinnati, New Orleans, and Texas Pacific Railway Company until December 31, 2026, with a renewal option of twenty-five years. Pursuant to the Ohio Revised Code, the use of the rental income from the railway line is restricted to debt service.

9. LONG-TERM DEBT

GeneralU Obligation Bonds and NotesU

The City issues general obligation bonds and notes to provide funds for the acquisition and construction of major capital facilities. General obligation bonds have been issued for both governmental and business-type activities.

General obligation bonds are direct obligations and pledge the full faith and credit of the City. General obligation bonds and notes currently outstanding are as follows:

84 (Amounts in Thousands)

PurposeU U InterestU Rates U AmountU U Governmental activities .33% - 7.875% $394,170

Business-type activities 4.200% - 5.0% U 19,405U $413,575

Annual debt service requirements to maturity for the general obligation bonds and notes are as follows:

Year Ending Governmental Activities Business-Type Activities December 31 Principal Interest Principal Interest 2010 $ 39,480 $ 17,165 $ 8,565 $ 567 2011 34,615 15,669 2,315 449 2012 34,090 14,232 2,315 355 2013 31,545 12,839 2,315 260 2014 30,220 11,533 2,115 164 2015-2019 114,350 39,849 1,325 259 2020-2024 59,275 20,815 325 72 2025-2029 37,390 7,560 130 9 2030-2034 12,105 1,903 - 2035 1,100 50 - - $ 394,170 $ 141,615 $ 19,405 $ 2,135

RevenueU Bonds and Notes U

The City also issues bonds and notes where the City pledges income derived from the acquired or constructed assets to pay debt service. The net revenues of the Water Works are pledged to payWater Works revenue bonds debt service. The original amount of revenue bonds and notes authorized in prior years was $737,101,000 of which $602,071,000 was issued.

Revenue bonds and notes outstanding at year-end are as follows:

(Amounts in Thousands)

PurposeU U InterestU Rates U AmountU Economic Development Various $ 80,140

Water Works Various U 415,965U $496,105

85 The annual debt service requirements to maturity for the revenue bonds and notes are as follows:

(Amounts in Thousands)

Year Ending Governmental Activities Business-Type Activities December 31 Principal Interest Principal Interest 2010 $ 3,140 $ 4,075 $ 14,865 $ 20,590 2011 2,285 3,887 15,430 20,085 2012 2,920 3,751 16,175 17,580 2013 3,075 3,595 16,710 18,618 2014 3,240 3,430 17,600 17,816 2015-2019 16,555 14,526 116,695 74,554 2020-2024 17,710 10,130 114,925 45,296 2025-2029 11,910 6,435 53,840 23,663 2030-2034 10,970 3,543 49,725 8,625 2035-2038 8,335 1,198 $ 80,140 $ 54,570 $ 415,965 $ 246,827

BuildU America Bond Subsidy

In 2009, the Cincinnati Water Works issued Series 2009A taxable bonds as Build America Bonds under the provisions of the American Recovery and Reinvestment Act of 2009. Under this agreement, the Water Works is to receive 35% of the Bond interest as the Build America Bond Subsidy. The amount received in 2009 was $553,000. Below is a schedule of the amounts to be received in future years:

Build America Bond Subsidy (Amounts in thousands)

Year Amount 2010 $ 1,701 2011 1,701 2012 1,701 2013 1,701 2014 1,702 2015-2019 8,506 2020-2024 8,069 2025-2029 5,876 2030-2034 2,519 $ 33,476

LongU -Term State Loans

The Ohio Public Works Commission extends loans to the City. Notes in the amount of $3,029,000 accounted for as Governmental type and $2,572,000 as Business-type represent the amounts due on ten loans from the Ohio Public Works Commission (OPWC) for infrastructure improvements. These notes are non-interest

86 bearing.

Annual debt service requirements to maturity for the Ohio Public Works Commission notes are as follows:

(Amounts in Thousands)

Year Ending Governmental Activities Business-Type Activities December 31 Principal Principal 2010 $ 173 $ 156 2011 211 157 2012 211 156 2013 211 157 2014 211 156 2015-2019 886 783 2020-2024 761 757 2025-2027 365 250 Total $ 3,029 $ 2,572

The Ohio Water Development Authority extends loans to the City. Notes in the amount of $4,920,000 accounted for as Business type represent the amounts due on two loans from the Ohio Water Development Authority (OWDA) for water works improvements. These notes bear interest at 3.25% per year. Only that portion of the loan commitment actually paid to the City is recognized as a liability by the City.

Annual debt service requirement to maturity for the Ohio Water Development Authority notes are as follows:

(Amounts in Thousands) Year Ending Business-type Activities December 31 Principal Interest 2010 $ 225 $ 163 2011 232 156 2012 239 148 2013 247 141 2014 255 132 2015-2019 1,408 530 2020-2024 1,654 284 2025-2027 660 36 Total $ 4,920 $ 1,590

87 The Ohio Department of Development provided an Urban Redevelopment Loan to the City during 2007. This loan is secured by a mortgage on a parking garage. The mortgage is interest free through June 30, 2011 and after that date the interest rate is 3%. In addition a 1% service fee is charged on the outstanding loan balance during the term of the loan. Annual debt service requirement for the Urban Redevelopment Loan are as follows:

Year Ending Business-type Activities December 31 Principal Interest 2012 $ 409 $ 138 2013 422 125 2014 435 113 2015-2019 2,377 359 2020-2021 1,055 40 Total $ 4,698 $ 775

88 Bonds and Notes Outstanding at December 31, 2009 (AMOUNTS IN THOUSANDS) Amount Amount Original Due Outstanding Description Interest Rates Issue Dates Maturity Dates Authorized 2010 12/31/2009 Bonds: General Property Tax Supported 5.0% 2001-2004 2014-2016 $ 39,640 $ 2,850 $ 7,480 7.875% 1987 2017 30,000 1,000 8,000 Various Rate Issues 2.0% to 5.5% 2000-2009 2010-2029 281,580 21,130 158,495 Refunding 4.25% to 5.00% 2007 2020 45,520 0 41,920

Urban Redevelopment Various Rate Issues 4.5% to 5.5% 2004 2020 2,600 120 1,675

Municipal Income Tax 2.25% to 5.50% 2000-2009 2015-2029 80,960 4,325 69,430 Refunding 4.25% to 5.00% 2007 2020 2,480 0 2,480

Recreational Facilities 5.00% to 6.75% 1990-2001 2011-2021 10,300 550 1,100 Refunding 4.25% to 5.00% 2007 2021 4,500 0 4,500

Urban Renewal/Economic Dev. 2.0% to 6.00% 2002-2009 2012-2032 32,675 1,795 22,940

Judgement 3.0% to 5.0% 2005 2020 4,300 290 3,140

Urban Development Taxable Various Rate Issues 2.00% to 6.046% 2001-2009 2016-2028 19,805 1,460 10,390 Refunding 4.25% to 5.00% 2007 2021 2,500 0 2,500

MSD Administration Bldg 2.0% to 5.0% 2009 2029 15,000 540 15,000

Police & Fire Pension 5.10% to 5.25% 2000 2010 42,000 665 665 Refunding 3.0% to 4.5% 2005 2035 41,000 265 39,965

Total General Long-Term Bond Obligations 654,860 34,990 389,680

Parks & Recreation 3.25% to 5.0% 2006-2008 2026 3,800 315 3,355

Water Works 4.20% 1999 2014 29,800 2,000 9,800

Total Proprietary Fund Obligations 33,600 2,315 13,155

Total General Obligation Bonds Payable 688,460 37,305 402,835

Notes:

Economic Development .33% 2009 2010 6,000 5,000 5,000 Stormwater .50% 2009 2010 1,250 1,250 1,250 Public Building Improvement .51% 2009 2010 5,000 4,490 4,490

Total General Obligation Notes Payable 12,250 10,740 10,740

Total General Obligation Bonds and Notes Payable $ 700,710 $ 48,045 $ 413,575

Revenue Bonds 3.49% to 8.00% 1996-2009 2010-2038 $ 888,931 $ 18,005 $ 496,105

Total Outstanding Debt $ 1,589,641 $ 66,050 $ 909,680

89 U Changes in long-term liabilities

Long-term liability activity for the year ended December 31, 2009, was as follows:

(Amounts in Thousands) Beginning Ending Due Within Balance Additions Reductions Balance One Year Governmental Activities: Bonds Payable: General Obligation Bonds $ 363,120 $ 69,330 $ 42,770 $ 389,680 $ 34,990 Revenue Bonds 70,825 12,770 3,455 80,140 3,140 Total Bonds Payable 433,945 82,100 46,225 469,820 38,130

Compensated Absences 91,062 44,933 34,308 101,687 34,372 Claims and Judgments 41,132 97,284 107,325 31,091 19,341 Capital Leases 247 502 248 501 97 Net Pension Obligation 29,834 31,365 23,616 37,583 Net Other Post Employment Benefit Obligation 15,023 16,415 6,571 24,867 State Loans 3,220 191 3,029 173 Other 1,965 108 1,857 22 Governmental Activities Long-term Liabilities $ 616,428 $ 272,599 $ 218,592 $ 670,435 $ 92,135

Business-type Activities: Bonds Payable: General Obligation Bonds $ 15,470 $ 2,315 $ 13,155 $ 2,315 Revenue Bonds 332,635 136,030 52,700 415,965 14,865 Total Bonds Payable 348,105 136,030 55,015 429,120 17,180

Compensated Absences 7,699 3,877 3,041 8,535 4,200 Claims and Judgments 186 51 43 194 194 Capital Leases 268 174 158 284 115 Net Pension Obligation 8,451 7,110 4,516 11,045 Net Other Post Employment Benefit Obligation 4,067 3,868 1,496 6,439 State Loans 12,622 27 459 12,190 381 Other - - - Business-Type Activities Long-term Liabilities $ 381,398 $ 151,137 $ 64,728 $ 467,807 $ 22,070

For the governmental activities, claims and judgments are generally liquidated by the general fund. Compensated absences for the governmental activities are generally liquidated bythe employee’s home fund, the fund from which the employee’s regular wages are paid.

Internal Service funds predominantly serve the governmental funds. Accordingly, long-term liabilities for them are included as part of the above totals for governmental activities. At year-end, $1,875,000 of compensated absences, $21,096,000 of unpaid claims, $4,176,000 of net pension obligation, and $1,749,000 of net other post employment benefit obligation for the internal service funds are included in the above amounts.

DefeasedU Bonds

On October 27, 2009, the City issued refunding bonds in the amount of $5,080,000 with issuance costs and underwriters fees of $117,000 with callable dates on or after December 1, 2019 to defease $4,800,000 of current debt with callable dates on or after June 1, 2009 with various interest rates of 4.446% to 6.046%.

90 A summary of this transaction is below (in thousands):

Sources:U Par amount of Bonds $5,080

Uses:U U Escrow Deposit $4,949 Costs of Issuance 59

Underwriter’s discount U 72U $5,080

Old Old Total New New Total Debt Debt Old Debt Debt New Date Principal Interest Debt Principal Interest Debt 12/1/2009 $ 165 $ 150 $ 315 $ 26 $ 26 12/1/2010 345 284 629 165 273 438 12/1/2011 370 262 632 175 265 440 12/1/2012 390 239 629 180 257 437 12/1/2013 415 214 629 190 249 439 12/1/2014 445 188 633 200 241 441 12/1/2015 470 160 630 205 232 437 12/1/2016 500 130 630 215 222 437 12/1/2017 535 98 633 225 213 438 12/1/2018 565 64 629 240 203 443 12/1/2019 600 28 628 250 189 439 12/1/2020 260 180 440 12/1/2021 280 164 444 12/1/2022 295 146 441 12/1/2023 315 128 443 12/1/2024 335 109 444 12/1/2025 355 88 443 12/1/2026 375 67 442 12/1/2027 400 43 443 12/1/2028 420 19 439 $ 4,800 $ 1,817 $ 6,617 $ 5,080 $ 3,314 $ 8,394

On August 4, 2009, the Cincinnati Water Works issued refunding bonds in the amount of $58,095,000 at various rates from 3 to 5% to extinguish existing debt of $38,700,000 issued in 2001, 2003 and 2005 at interest rates from 3.8 to 5.5%. Refunding bonds were issued at a premium of $6,849,774 with issuance costs and underwriter’s fees of $473,540. There was a deferred loss of $2,607,256 which is included in deferred charges.

A deposit was made to an escrow account in the amount of $43,183,893 and was invested in U. S. Treasury State and Local Government Securities at various yield rates with various maturity dates to be sufficient for any payment of the principal and interest due.

91 The transaction is summarized below (in thousands):

SU ources: Bond Proceeds Par Amount $58,095

Premium U 6,850U 64,945 Other Sources

Debt Service Fund Release U 321 $65,266

Uses:U Refunding Escrow Deposits – SLG Purchases $43,183

Project Fund Deposits 20,822

Other Fund Deposits Debt Service Reserve Fund 785 Delivery Date Expenses Cost of Issuance 238

Underwriter’s Discount U 236U 474 Other Uses of Funds

Additional Proceeds U 2 $65,266

Old Old Total New New Total Debt Debt Old Debt Debt New Date Principal Interest Debt Principal Interest Debt 12/1/2009 $ 965 $ 965 $ 818 $ 818 12/1/2010 1,930 1,930 $ 165 2,517 2,682 12/1/2011 $ 2,795 1,930 4,725 2,965 2,512 5,477 12/1/2012 5,400 1,776 7,176 5,505 2,423 7,928 12/1/2013 605 1,508 2,113 610 2,258 2,868 12/1/2014 275 1,484 1,759 275 2,234 2,509 12/1/2015 5,435 1,474 6,909 8,310 2,223 10,533 12/1/2016 6,105 1,204 7,309 9,035 1,890 10,925 12/1/2017 5,770 904 6,674 8,805 1,489 10,294 12/1/2018 5,960 616 6,576 9,145 1,049 10,194 12/1/2019 6,355 318 6,673 9,700 591 10,291 12/1/2020 3,580 179 3,759 12/1/2021 - 12/1/2022 - 12/1/2023 - 12/1/2024 - 12/1/2025 - 12/1/2026 - 12/1/2027 - 12/1/2028 - $ 38,700 $ 14,109 $ 52,809 $ 58,095 $ 20,183 $ 78,278

92 Below is a description of the City’s defeased bonds and the outstanding balances at December 31, 2009 (in thousands). These bonds are no longer included in the financial statements.

Interest Rate Description Date Original Redemption Defeased Of Originally Par Call Date Maturities bonds Amount Outstanding Bonds Issued Amount Date Defeased Defeased % Defeased 12/31/2009

Police and Fire 2005-2006 Pension –G1213 3/1/2000 42,000 6/28/2005 2011-2035 4.9-6.0 40,470 39,665

Various Purpose GO -Series 2000 4/1/2000 69,885 12/1/2010 8/23/2007 2012-2020 5.0-5.375 52,005 51,400 GO – Series 2001 4/1/2000 47,695 12/1/2010 8/23/2007 2012-2021 5.0 GO – Series 2002 4/1/2000 27,700 12/1/2011 8/23/2007 2015-2017 5.0

Water Works Revenue Bonds Series 2001 and 3/1/2001 92,685 6/1/2011 1/4/2007 2007-2023 4.75-5.5 127,415 127,070 Series 2003 3/1/2003 112,360 Water Works 3/1/2001 92,865 6/1/2011 8/4/2009 2011-2013 4.5-5.5 3,465 38,700 Revenue Bonds 3/5/2003 112,360 6/1/2011 2012-2016 3.8-5.0 6,510 5/19/2005 80,585 6/1/2013 2015-2019 5 28,725 Urban Development

GO G1206 12/1/1998 7,200 10/27/2009 2009-2019 6.25 4,800 5,080

10. DEBT LIMITATION

The City's "indirect" (ten mill) debt limit was removed by decision of the Ohio courts. In September 1977, the Supreme Court of Ohio dismissed an appeal from the decision of the Court of Appeals, First Appellate District, Hamilton County, Ohio, involving the City's debt limitations. In summary, the City instituted a test case against the Director of Finance for the purpose of obtaining a definitive construction of certain sections of the City Charter bearing on the right of the City to levy taxes in excess of the ten mill limitation of Section 5705.02 of the

Ohio Revised Code. As a result of the Court decision, the City has the right to levy property taxes withoutU limitationU to support its lawfully issued bonds and notes, and the City's ability to incur debt will be limited only by the arithmetical (percentage) limitations set forth under Section 133.03 of the Ohio Revised Code.

Section 133.03 provides that the principal amount of both voted and unvoted debt of the City may not exceed 10-1/2% of the City's assessed valuation, and the principal amount of the City's unvoted debt may not exceed 5-1/2% of the City's assessed valuation. The Code also provides several exemptions of debt from the 5-1/2% and 10-1/2% limitations.

93 11. TAXES

CityU Income Tax

This locally levied tax applies to gross salaries, wages and other personal service compensation earned by residents both in and out of the City and to earnings of nonresidents (except certain transients) earned in the City. It also applies to net income of business organizations for business conducted in the City. The tax is the largest single source of General Fund revenue.

The City's income tax of 2.1% is subdivided into four components. The first component is 0.1%, which is to be spent only for the maintenance of the City's infrastructure. The second component is the 0.3%, which can be used only for public transit purposes, including both capital and current operating expense. The third component is 0.15%, which can be used only for permanent improvement purposes. The remaining 1.55% is first used to meet annual deficiencies, to the extent required, in the General Fund. The amount of the 1.55% income tax revenue over the fixed allocation to the General Fund at the end of any year is recognized as revenue in the Income Tax Permanent Improvement Fund. The unused amount can be carried forward for subsequent year capital or operating needs.

Actual collections of $223,800,216 for the 1.55% portion in 2009 were less than the original allocation. The following table identifies the excess 1.55% income tax collections for the years 2005 through 2009 and collections in excess of allocation:

(Amounts in Thousands)

Actual Collections Collections Allocation in Excess of

YearU U U of 1.55% U toU General FundU AllocationU U 2005 $ 210,537 $ 210,537 2006 222,938 219,000 $ 3,938 2007 226,509 225,008 1,501 2008 236,745 231,758 4,987 2009 223,800 223,800

PropertyU Taxes

The assessed valuation of property within the City subject to the levy of ad valorem taxes includes real property, public utilities property and tangible personal property. The assessed value upon which the 2009 levy was based was $5,647,648,000, $258,279,000 and $28,685,000 for real property, public utility property and tangible personal property, respectively (per Hamilton County Auditor). The City's property taxes are collected by the Hamilton County Auditor and are remitted to the City on a periodic basis. Real property taxes collected in any calendar year are generally levied on assessed values as of January 1 of the preceding year according to the following calendar:

PropertyU Tax Calendar - 2010

Lien date January 1, 2009 Levy date October 31, 2009 First installment payment due February 2, 2010 Second installment payment due June 22, 2010

94 Assessed values are established by the County Auditor, or at no more than 35% of appraised market value. The laws of the State of Ohio presently require that all property be revalued no less than every six years, at any time the County Auditor finds that true or taxable value thereof has changed, and in the third calendar year following the year in which a sexennial reappraisal is completed if ordered by the State Commissioner of Tax Equalization. Real property was reappraised during 2008 with the results affecting collections beginning in 2009. The City recognizes the property taxes due to be paid in 2010 as deferred revenue since the first settlement date is more than sixty days after year-end and does not meet the availability criteria for accrual.

Tangible personal property of public utilities is assessed at various rates (25% to 88% of true value) depending upon the type of property. Effective for collection year 2002, the assessed valuation of electric utility production equipment was reduced from 100% and natural gas utility property from 88% of true value, both to 25% of true value. Makeup payments in varying and declining amounts are to be made through 2016 to taxing subdivisions such as the City by the State from State resources.

The State’s 2005 biennial budget bill included a reduction in the 88% assessment rate for electric utility transmission and distribution equipment to 85%, and a reduction in the 25% assessment rate for all electric company taxable property to 24% commencing in tax year 2006. That legislation also provides for a phasing out of the taxation of all personal property used by telephone companies, telegraph companies, or interchange telecommunications companies by tax year 2011, with State reimbursement payments to be made in declining amounts through 2018.

House Bill 66 passed June 30, 2005, phases out the taxation of all tangible personal property used in business over four years beginning in 2006 and ending in 2009, when all such property becomes exempted from taxation. The phase out applies to most businesses and includes furniture and fixtures, machinery and equipment, and inventory. Current law provides for an exemption from the tangible personal property tax for assessed value up to $10,000 per business. To compensate for foregone revenue as the tangible personal property tax is phased out, the State will make distributions to taxing subdivisions (such as the City) from revenue generated by a newly enacted commercial activity tax. Generally, these distributions are expected to fully compensate taxing subdivisions for such tax revenue losses through 2010, with gradual reductions in the reimbursement amount from 2011 through 2017.

TaxU Increment Financing Districts (TIF Districts)

The City, pursuant to the Ohio Revised Code and City ordinances, has established 20 TIF Districts. A TIF District represents a geographic area not greater than 300 acres, wherein 100% of the property value increase created after the commencement date of the TIF Districts are exempt, in whole or in part, from property taxes. Owners of such property, however, must pay amounts equal to the property taxes, known as “statutory service payments”, as though the TIF District had not been established. These “statutory service payments” are then dedicated to the payments for various public improvements within or adjacent to the TIF District. Property values existing before the commencement of the TIF District continue to be subjected to property taxes.

In 2009, the City received “statutory service payments” totaling $7.1 million from the TIF districts. This amount is net of the county auditor fees and the payments to the Cincinnati School Board. In accordance with the agreement with the Cincinnati School district as amended December 18, 2002, twenty-seven percent of the statutory service payments received from the TIF districts is paid to the Cincinnati School Board. This tax revenue is accounted for in the Capital Project Funds since the monies are intended to be used to construct public improvements. Corresponding fixed assets are accounted for in the City’s infrastructure accounts.

TIF Districts have longevity of 30 years. The property tax exemption then ceases; statutory service payments cease, and property taxes then apply to the increased property values.

95 12. SHORT-TERM DEBT – BOND ANTICIPATION NOTES

The City issues bond anticipation notes in advance of issuance of bonds, depositing the proceeds in its capital projects fund. These notes are necessary to provide adequate funds at the time needed to support contracts for the improvements prior to issuance of the related bonds.

(Amounts in Thousands) Beginning Ending Balance Issued Redeemed Balance Governmental Activities: Revenue Bond Anticipation Notes $ 2,550 $2,550 General Obligation Bond Anticipation Notes $ 12,800 $34,283 $42,593 $4,490 $ 15,350 $34,283 $45,143 $4,490 Business-type Activities: General Obligation Bond Anticipation Notes $6,250 $6,250

The General Obligation Bond Anticipation Notes issued during the year and outstanding at year end include $10,740,000 in City issued notes that were purchased by the City. In the financial statements these notes are shown as Due from Other Funds by the funds that purchased the notes and Due to Other Funds by the fund that received the note proceeds.

13. RESTRICTED ASSETS

The balance of the restricted asset accounts in the enterprise funds are as follows:

(Amounts in Thousands)

Revenue bond construction account – Water Works $ 57,685 Revenue bond reserve account – Water Works 40,582 Revenue bond construction account – Parking Facilities 400 Customer deposits – Water Works 1,690

Construction account - other – Water Works U 9,978

Total restricted assets $110,335

96 14. CAPITAL ASSETS

Capital asset activity for the year ended December 31, 2009 was as follows:

(Amounts in Thousands) Beginning Ending Balance Increases Decreases Balance Governmental Activities: Capital assets, not being depreciated: Land $ 167,875 $ 4,871 $ (61) $ 172,685 Construction in Progress 132,208 106,785 (119,219) 119,774 Total capital assets, not being depreciated 300,083 111,656 (119,280) 292,459

Capital assets, being depreciated: Buildings 149,947 34,949 (346) 184,550 Improvements other than buildings 338,486 16,357 354,843 Machinery and Equipment 153,942 15,739 (16,729) 152,952 Property acquired under capital leases 1,173 502 1,675 Infrastructure 666,826 57,323 724,149 Total capital assets, being depreciated 1,310,374 124,870 (17,075) 1,418,169

Less accumulated depreciation for: Buildings (104,321) (5,573) 252 (109,642) Improvements other than buildings (179,593) (10,576) (190,169) Machinery and Equipment (93,798) (13,077) 12,180 (94,695) Property acquired under capital leases (905) (224) (1,129) Infrastructure (268,038) (29,556) (297,594) Total accumulated depreciation (646,655) (59,006) 12,432 (693,229)

Total capital assets, being depreciated, net 663,719 65,864 (4,643) 724,940

Governmental-type Activities capital assets, net $ 963,802 $ 177,520 $ (123,923) $ 1,017,399

97 Capital asset activity for the year ended December 31, 2009 was as follows:

(Amounts in Thousands) Beginning Ending Balance Increases Decreases Balance Business-type Activities: Capital assets, not being depreciated: Land $ 39,553 $ 764 $ 40,317 Construction in Progress 105,640 43,079 (55,862) 92,857 Total capital assets, not being depreciated 145,193 43,843 (55,862) 133,174

Capital assets, being depreciated: Buildings 324,328 5,966 (10,118) 320,176 Improvements other than buildings 836,480 63,569 (1,896) 898,153 Machinery and Equipment 245,605 10,078 (9,624) 246,059 Property acquired under capital leases 384 105 489 Total capital assets, being depreciated 1,406,797 79,718 (21,638) 1,464,877

Less accumulated depreciation for: Buildings (161,778) (8,704) 5,800 (164,682) Improvements other than buildings (171,399) (13,638) 4,011 (181,026) Machinery and Equipment (136,140) (14,091) 8,282 (141,949) Property acquired under capital leases (105) (38) (143) Total accumulated depreciation (469,422) (36,471) 18,093 (487,800)

Total capital assets, being depreciated, net 937,375 43,247 (3,545) 977,077

Business-type Activities capital assets, net $1,082,568 $ 87,090 $ (59,407) $ 1,110,251

Depreciation expense was charged to functions/programs of the City as follows:

(Amounts in Thousands)

Governmental activities: General Government $ 3,808 Community Development 5,499 Parks and Recreation 5,065 Public Safety 5,507 Transportation and Engineering 28,192 Public Services 5,767 Public Health 472 Capital assets held by the City's internal service funds are charged to the various functions based on their usage of the assets 4,696

Total depreciation expense - governmental activities: $ 59,006

98 (Amounts in Thousands)

Business-type activities: Water Works $ 23,816 Parking Facilities 2,098 Convention Center 7,362 General Aviation 747 Municipal Golf 469 Stormwater Management 1,979

Total depreciation expense - business-type activities: $ 36,471

Governmental Activities Construction in Progress at December 31, 2009 is comprised of the following:

(Amounts in Thousands) Expended to Required Project December 31 Future Administering Department Authorizations 2009 Committed Financing Transportation and Engineering $ 76,359 $ 4,509 $ 71,850 $ 11,737 Community Development 46,915 18,406 28,509 9,985 Economic Development 4,313 1,812 2,501 2,266 Recreation 30,422 23,105 7,317 860 Safety 8,652 4,678 3,974 Parks 44,943 26,528 18,415 3,249 Public Services 46,931 29,536 17,395 298 Other 56,505 11,200 45,305

Total $ 315,040 $ 119,774 $ 195,266 $ 28,395

Required future financing represents Federal, State and City commitments in support of City projects.

Business Activities Construction in Progress at December 31, 2009 is comprised of the following:

(Amounts in Thousands) Expended to Required Project December 31 Future Enterprise Fund Authorizations 2009 Committed Financing

Water Works $ 140,561 $ 77,312 63,249 $ - Parking Facilities 7,455 2,322 5,133 Convention Center 1,594 1,103 491 1,000 General Aviation 2,320 994 1,326 Municipal Golf 4,989 4,638 351 Stormwater Management 8,647 6,488 2,159

Total $ 165,566 $ 92,857 $ 72,709 $ 1,000

99 15. RECEIVABLES

Accounts Receivable are presented in the financial statements net of the allowance for uncollectible accounts. The uncollectible accounts related to the General Fund at December 31, 2009, are as follows: Taxes Receivable ($3,391,000) and other accounts receivable ($4,653,000). The uncollectible accounts related to the Debt Service Fund at December 31, 2009 are Taxes Receivable ($4,076,000). The balance for the allowance for uncollectible accounts in the Capital Projects Fund at December 31, 2009 is ($13,323,000). The balance of the allowance accounts for Special Revenue Funds is ($3,772,000) as of December 31, 2009. The balances of the allowance accounts of the proprietary funds as of December 31, 2009 are as follows: Water Works ($6,728,000), Regional Computer Center ($1,000), General Aviation ($11,000),Convention Center ($4,000), and Stormwater Management ($1,128,000).

Loans receivable of the special revenue funds are made from revolving type loan accounts financed by allocations from the City's Community Development Block Grant. These loans are secured by liens on the property. Federal regulations provide that the grantor maintains the ownership of the City's Community Development Block Grant funded revolving loan portfolio; accordingly, revolving loan fund transactions do not affect the operating statement. A small number of the special revenue loans, with a value of $7,759,000, were made from Housing and Urban Development Section 108 funds and do not involve a revolving type loan account. The loans are repaid to the federal government. If the borrower fails to repay the loan, the City's Community Development Block Grant funds may be used to repay the federal government. The total amount receivable for the special revenue loans is offset by an allowance for uncollectible loans receivable. Special revenue loans receivable at December 31, 2009 total $60,762,000.

Loans receivable of the capital project funds receive similar treatment to the special revenue funds' loans receivable, in that the total amount receivable is offset by an allowance for uncollectible loans receivable. The balance of the loans receivable at December 31, 2009 is $16,011,000. This amount is related to Goodall Properties Ltd., forgivable housing loans and downtown development loans.

Sale of Blue Ash Airport

The City of Cincinnati sold 130 acres of the Blue Ash Airport property to the City of Blue Ash for $37,500,000. A payment of $1,000,000 was made at the closing on the property. The balance of $36,500,000 is to be received as follows: an annual payment of $1,000,000 per year for nine years starting on July1, 2008; an annual payment of $1,250,000 per year for the next ten years starting on July 1, 2017 ; and an annual payment of $1,500,000 per year for the next ten years starting on July 1, 2027. The City of Cincinnati has agreed to be responsible for costs associated with completing remedial action work at the Blue Ash Airport up to $1,500,000.

In accordance with FASB Guidance, the loan receivable has been discounted using a 5% imputed interest rate and will be accounted for as collected using the following present value schedule.

100 Year Loan Repayment Interest Received 2010 $ 864 $ 136 $ 1,000 2011 823 177 1,000 2012 784 216 1,000 2013 746 254 1,000 2014 711 289 1,000 2015-2019 3,515 2,235 5,750 2020-2024 3,013 3,237 6,250 2025-2029 2,631 4,369 7,000 2030-3034 2,220 5,280 7,500 2035-2036 747 2,253 3,000

Total $ 16,054 $ 18,446 $ 34,500

16. CONTINGENT LIABILITIES

FederalU and State Grants

The City has received Federal and State grants of approximately $49 million for specific purposes that are subject to review and audit by the grantor agencies or their designee. Such audits could lead to a request for reimbursement to the grantor agency for expenditures disallowed under terms of the grant. Such disallowances have been immaterial in prior years.

LitigationU

Various claims and lawsuits are pending against the City as of December 31, 2009. A liability of $9.6 million was recorded for those claims and judgments as of December 31, 2009. Over the past decade, the City has averaged annual payments of $2.8 million for claim and lawsuit settlements. Adequate funds have been provided to meet the claims paid from the General Fund, restricted funds and the sale of debt. The City Administration believes there is no foreseen problem in having adequate resources to settle presently known cases.

PollutionU Remediation Liability

The City has entered into an agreement to clean up and remediate the former Queen City Barrel site. The estimated total cost of the site remediation is $11,977,994 which will be offset by a Clean Ohio Council Grant of $3,000,000 and other funding sources of $4,089,532. The remaining liability of $4,888,462 less the project expenditures to date of $3,524,206 is an accrued liability for the City as of December 31, 2009.

The City also has several underground storage tanks for which it is responsible for the ongoing remediation and clean up costs. The remaining estimated liability at December 31, 2009 is approximately $780,000.

101 17. RISK MANAGEMENT

The City is exposed to various risks of loss related to torts; theft of, damage to, or destruction of assets; errors and omissions; injuries to employees; employee health claims; unemployment compensation claims; and environmental damage. The City purchases commercial insurance to cover losses due to: theft of, damage to, or destruction of assets and purchases general liability insurance for specific operations and professional liability insurance for certain operations. All other risks of loss are self-insured by the City. There has been no reduction in insurance coverage from coverage in 2009. Insurance settlements for claims resulting from the risks covered by commercial insurance have not exceeded the insurance coverage in any of the past three years.

The City of Cincinnati provides a health insurance plan for its employees. The plan is self-insured and accounted for as an internal service fund. This internal service fund, titled "Self Insurance - Medical" has been in existence since 1980. Operating funds are charged a monthly rate per employee, by type of coverage.

In 1990, the City began to account for and finance its risk of loss due to workers' compensation claims and established an internal service fund titled "Self Insurance - Workers' Compensation". Workers' compensation is administered by the State. The City reimburses the Bureau of Workers' Compensation for injured workers' claims. All funds of the City participate in the program and make payments to the internal service fund based on the experience premium that would normally be charged by the Bureau of Workers' Compensation. Policy years 1989 through 2000 were financed through the retrospective rating program. Policy years 2001 and 2002 were financed through the fully insured program with the State Fund workers’ compensation program. Beginning with policy year 2003, the City elected to be fully self-insured for workers’ compensation. All of the City’s workers’ compensation liabilities are funded within the “Workers’ Compensation – Self-Insurance” fund. Changes in the balances of claims liabilities and claims adjustment expenses during 2009 and 2008 are as follows:

(Amounts in Thousands) Convention General Municipal Water Works Parking Facilities Center Aviation Golf General Fund Fund Fund Fund Fund Fund 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008

Balance at $ 388 $ 275 $ 183 $ 145 $ 1 $ 3 $ 1 $ 3 $ - $ - $ - January 1 Current-Year Claims Claims and Changes in Estimates 1,014 1,249 51 497 1 2 (1) (2) 220 2 Claim Payments (973) (1,136) (41) (459) (2) (4) 0 (220) (2) Balance at December 31 $ 429 $ 388 $ 193 $ 183 $ - $ 1 $ - $ 1 $ - $ - $ - $ -

Stormwater Income Tax Self Insurance Workers' Governmental Management Infrastructure Medical Compensation Activities Fund Fund Fund Fund Obligations Totals 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008

Balance at $ 1 $ 3 $ 151 $ 27 $ 14,335 $ 12,480 $14,440 $15,693 $17,957 $12,000 $ 47,457 $ 40,629 January 1 Current-Year Claims Claims and Changes in Estimates (2) (111) 160 101,709 91,176 4,077 4,251 (7,606) 8,397 99,134 105,950 Claim Payments 0 (29) (36) (100,537) (89,321) (4,990) (5,504) (796) (2,440) (107,368) (99,122) Balance at December 31 $ 1 $ 1 $ 11 $ 151 $ 15,507 $ 14,335 $13,527 $14,440 $ 9,555 $17,957 $ 39,223 $ 47,457

The claims liabilities at December 31, 2009 for the Internal Service Funds above (Self-Insurance Medical and Workers Compensation) are included in the following liabilities in the balance sheet:

102 (Amounts in Thousands) Self-Insurance Workers Medical Compensation

Accounts Payable $ 4,977 $ 488

Accrued Liabilities 2,473

Estimated Liability

For Unpaid Claim U 10,530U U 10,566U

Total $15,507 $13,527

18. PRIOR PERIOD ADJUSTMENT

In 2009, the decision was made to include the working capital reserve fund in the general fund instead of in the capital projects fund resulting in a restatement of the prior year fund balance. The amount of the adjustment was $25,312,000. The restatement is a follows:

General Fund Capital Projects Fund (Amounts in thousands) Fund balance, January 1, 2009 $ 66,697 $ 209,678 Restatement 25,312 (25,312) Restated fund balance, January 1, 2009 $ 92,009 $ 184,366

19. SUBSEQUENT EVENTS

On February 10, 2010, City Council authorized providing for the issuance, sale and delivery of not to exceed $2,000,000 of economic development bonds (Oakley Streetscape and Esplanade Improvement Project), or notes in anticipation thereof, of the City of Cincinnati, County of Hamilton, State of Ohio, for the purpose of financing certain improvements; authorizing a pledge of the City's faith and credit or a pledge of and lien on or a pledge of an lien on Oakley - Tax Increment District #20 revenues, other City resources, as appropriate, to secure such bonds or notes; and authorizing necessary documents to secure such bonds or notes.

On March 24, 2010, City Council authorized providing for the issuance of notes in the principal amount of $6,112,263 by the City of Cincinnati in anticipation of the issuance of bonds, and to provide funds for recreation improvements.

On March 24, 2010, City Council authorized providing for the issuance of notes in the principal amount of $3,053,000 by the City of Cincinnati in anticipation of the issuance of bonds, and to provide funds for park improvements, and declaring an emergency.

On March 24, 2010, City Council authorized providing for the issuance of notes in the principal amount of $7,674,537 by the City of Cincinnati in anticipation of the issuance of bonds, and to provide funds for street improvements.

On March 24, 2010, City Council authorized providing for the issuance of bonds or notes in anticipation of such bonds, by the City of Cincinnati, Ohio, in the principal amount of $4,000,000 for the purpose of parks and recreation improvements.

103 On March 24, 2010, City Council authorized providing for the issuance of bonds or notes in anticipation of such bonds, by the City of Cincinnati, Ohio in the principal amount of $8,930,000 for the purpose of making equipment improvements.

On March 24, 2010, City Council authorized providing for the issuance of bonds or notes in anticipation of such bonds, by the City of Cincinnati, Ohio in the principal amount $5,250,000, for the purpose of public building improvements.

On March 24, 2010, City Council authorized providing for the issuance of bonds or notes in anticipation of such bonds, by the City of Cincinnati, Ohio, in the principal amount of $13,820,000 for the purpose of street improvements, and declaring an emergency.

On March 24, 2010, City Council authorized providing for the issuance, sale and delivery of not to exceed $2,500,000 of Economic Development Revenue Bonds (Metropole Hotel Urban Renewal Project) (Taxable), or notes in anticipation thereof, of the City of Cincinnati, County of Hamilton, State of Ohio, for the purpose of financing certain improvements; authorizing a pledge of and lien of certain revenues and other City resources, as appropriate, to secure such bonds or notes; and authorizing necessary documents to secure such bonds or notes

On March 24, 2010, City Council authorized providing for the issuance, sale and delivery of not to exceed $4,600,000 of Economic Development Revenue Bonds (Metropole Hotel Urban Renewal Loan Project), or notes in anticipation thereof, of the City of Cincinnati, County of Hamilton, State of Ohio, for the purpose of financing certain improvements; authorizing a pledge of the City's faith and credit or a pledge of and lien on certain revenues and other city resources, as appropriate, to secure such bonds or notes; and authorizing necessary documents to secure such bonds or notes.

On May 12, 2010, City Council authorized providing for the issuance of bonds or notes in anticipation of such bonds, by the City of Cincinnati, Ohio in the principal amount of $2,125,000 for the purpose of stormwater management improvements (Barrier Dam Projects).

On May 26, 2010, City Council authorized, by ordinance 178-2010, the issuance of bonds of notes in anticipation of such bonds, by the City of Cincinnati, Ohio in the principal amount of $5,080,000 for the purpose of making public building improvements.

On May 12, 2010, City Council authorized amending Ordinance 0180-2009 which authorized the issuance of bonds or notes in anticipation of such bonds, by the City of Cincinnati, Ohio in the principal amount of $5,000,000 the proceeds of which would be used to make public building improvements, for the purpose of authorizing the Director of Finance to designate any such bonds as Build America Bonds that are Recovery Zone Economic Development Bonds as permitted by the American Recovery and Reinvestment Act of 2009.

On May 12, 2010, City Council authorized providing for the issuance, sale and delivery of not to exceed $11,000,000 of Urban Redevelopment Bonds (Streetcar System), or notes in anticipation thereof, of the City of Cincinnati, County of Hamilton, State of Ohio, for the purpose of financing certain improvements; and further authorizing a pledge of the City's faith and credit or a pledge of and lien on certain revenues and other city resources, as appropriate, to secure such bonds on notes; and further authorizing necessary documents to secure such bonds or notes

On May 12, 2010, City Council authorized providing for the issuance of bonds or in anticipation of such bonds, by the City of Cincinnati, Ohio, in the principal amount of $28,000,000 for the purpose of urban redevelopment improvements.

104 On May 12, 2010, City Council authorized providing for the issuance, sale and delivery of not to exceed $25,000,000 of Urban Redevelopment Bonds (Streetcar System), or notes in anticipation thereof, of the City of Cincinnati, County of Hamilton, State of Ohio, for the purpose of financing certain improvements; authorizing a pledge of the city's faith and credit or a pledge of and lien on certain revenues and other city resources, as appropriate, to secure such bonds or notes; and authorizing necessary documents to secure such bonds or notes.

On May 12, 2010, City Council authorized providing for the issuance of bonds or notes in anticipation of such bonds, by the City of Cincinnati, Ohio, in the principal amount of $3,800,000 for the purpose of making equipment improvements (recycling carts), and declaring an emergency.

20. POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS

Plan Description

The City administers a death benefit for its employees, both active and retired, that are police officers or fire fighters. If the police officer or fire fighter is retired, the benefit provides for $5,000 to be paid to the designated beneficiary of the deceased police officer or fire fighter upon receipt of proof of death. If the police officer or fire fighter is active, the benefit provides for $35,000 to be paid to the designated beneficiary of the deceased police officer or fire fighter upon receipt of proof of death. Benefit provisions are negotiated individually between the Fire union and the City, and the Police union and the City.

Funding Policy

The benefit is funded on a pay-as-you-go basis. Each year the City budgets for a pre-determined amount based on prior years payments. The members of the Ohio Police and Fire Pension Fund do not make a contribution for this benefit. In 2009 the City budgeted $300,000 and paid out $225,000. The benefits unfunded liability for 2009 based on the future value of the liability as calculated by the City is $891,000.

21. PENSION AND RETIREMENT

City employees are covered by one of three pension systems. They are the Ohio Police and Fire Pension Fund (OP&F) and the Ohio Public Employees Retirement System (OPERS), which are State pension systems, and the City of Cincinnati's Retirement System. The City Retirement System, OP&F and OPERS-Traditional Pension Plan are cost-sharing multiple-employer defined benefit pension plans. OPERS has two other pension plans: the Member Directed Plan-a defined contribution plan and the Combined Plan-a cost-sharing multiple-employer defined benefit pension plan that has elements of both a defined benefit and contribution plan.

OhioU Police and Fire Pension FundU

Plan Description

Police and Fire Fighters of the City of Cincinnati are members of the Ohio Police and Fire Pension Fund. The City of Cincinnati contributes to the (OP&F), a cost-sharing multiple-employer defined benefit pension plan. OP&F provides retirement and disability pension benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. Benefit provisions are established by the Ohio State Legislature and are codified in Chapter 742 of the Ohio Revised Code. OP&F issues a publicly available financial report that includes financial information and required supplementary information for the plan. That report may be obtained by writing to OP&F, 140 East Town Street, Columbus, Ohio 43215-5164.

105 Funding Policy

Plan members are required to contribute 10.0% of their annual covered salary, while the City of Cincinnati is required to contribute 19.5% and 24.0% respectively for police officers and fire fighters. The City of Cincinnati’s contributions to OP&F for the years ending December 31, 2009, 2008, and 2007 were $29,969,000, $29,460,000 and $27,974,000, respectively equal to the required contribution for each year.

The OP&F informed the City that the City's only unfunded prior service cost of the fund is the deficiency existing at the time the fund was established in 1967 as determined by actuarial evaluation. On March 1, 2000 the City sold bonds for the refunding of the City’s obligation for the employer’s accrued liability. Pursuant to Section 742.30 of the Ohio Revised Code, the City and the OP&F (the Fund) have entered into an agreement, which permitted the City to make a one-time payment to the Fund for the purpose of extinguishing the City’s obligation to the Fund for employer’s accrued liability. The payment amount was $41,454,864, which represents 68% of the first $500,000 of the employer’s accrued liability and 70% of the balance, plus accrued interest on the full amount of such accrued liability from March 1, 2000 to the date of payment.

Other Post Employment Benefit Information

PlanU Description:U The City of Cincinnati contributes to the OP&F sponsored healthcare program, a cost-sharing multiple-employer defined post employment healthcare plan administered by OP&F. OP&F provides health care benefits including coverage for medical, prescription drugs, dental, vision, Medicare Part B Premium and long term care to retirees, qualifying benefit recipients and their eligible dependents. OP&F provides access to post- retirement health care coverage for any person who receives or is eligible to receive a monthly service, disability, or survivor benefit check or is a spouse or eligible dependent child of such person. The healthcare coverage provided by OP&F meets the definition of an Other Post Employment Benefit (OPEB) as described in GASB 45.

The Ohio Revised code allows, but does not mandate OP&F to provide OPEB benefits. Authorityfor the OP&F Board of Trustees to provide healthcare coverage to eligible participants and to establish and amend benefits, are codified in Chapter 742 of the Ohio Revised code.

FundingU Policy:U OP&F maintains funds for health care in two separate accounts: One for health care benefits under an IRS Code Section 115 trust and one for Medicare Part B reimbursements administered as an Internal Revenue Code 401(h) account, both of which are within the defined benefit pension plan, under the authority granted by the Ohio Revised Code to the OP&F Board of Trustees.

The Board of Trustees is authorized to allocate a portion of the total employer contributions made into the pension plan to the Section 115 and the Section 401(h) account as employer contribution for retiree health care benefits. For the year ended December 31, 2009, the employer contribution allocated to the health care plan was 6.75% of covered payroll. The amount of employer contributions allocated to the health care plan each year is subject to the Trustees’ primary responsibility to ensure that pension benefits are adequately funded and is limited by the provisions of Sections 115 and 401 (h).

The OP&F board of trustees also is authorized to establish requirements for contributions to the healthcare plan by retirees and their eligible dependents or their surviving beneficiaries. Payment amounts vary depending on the number of covered dependents and the coverage selected.

The Ohio Revised Code provides that healthcare cost paid from the funds of OP&F be included in the employer’s contribution rate. The portion of the City's contributions for police that were used to pay postemployment benefits for the years ending December 31, 2009, 2008, and 2007, were $5,586,915, $5,312,827 and $5,057,154, respectively. For firefighters the contributions used to pay postemployment benefits for the years ending December 31, 2009, 2008, and 2007, were $4,252,101, $3,963,545 and

106 $3,753,471, respectively.

StateU PERS

Plan Description

Only City employees who were members in the Public Employees Retirement System of Ohio (OPERS) or another Ohio State Retirement System prior to their City employment, City personnel employed in the building crafts trade since 1961, elected officials and certain part-time employees are enrolled in OPERS.

Ohio Public Employees Retirement System (OPERS) administers three separate pension plans as described below:

The Traditional Pension Plan- cost-sharing multiple-employer defined benefit pension plan.

The Member–Directed Plan - a defined contribution plan in which the member invests both member and employer contributions (employer contributions vest over 5 years at 20% a year). Under the Member Directed Plan, members accumulate retirement assets equal to the value of member and (vested) employer contributions plus any investment earnings.

The Combined Plan - a cost-sharing multiple-employer defined benefit pension plan. Under the Combined Plan, OPERS invests employer contributions to provide a formula retirement benefit similar in nature to the Traditional Pension Plan benefit. Member contributions, the investment of which is self-directed by the member, accumulate retirement assets in a manner similar to the Member-Directed Plan.

OPERS provides retirement, disability, survivor and death benefits and annual cost-of-living adjustments to members of both the Traditional Pension and the Combined Plans. Members of the Member-Directed Plan do not qualify for ancillary benefits. Authority to establish and amend benefits is provided in Chapter 145 of the Ohio Revised Code. OPERS issues a stand-alone financial report. Interested parties may obtain a copy by writing to OPERS, 277 East Town Street, Columbus, Ohio 43215-4642 or calling (614) 222-5601 or (800) 222-7377.

Funding Policy

The Ohio Revised Code provides statutory authority for member and employer contributions. For 2009, member and employer contribution rates were consistent across all three plans. Employees contribute 10.0% of their annual compensation. For 2009 the City's contribution rate was 14.00% of covered payroll. The portion of the employer contribution allocated to health care was 7.00% from January 1 through March 31, 2009 and 5.5% from April 1 through December 31, 2009. City of Cincinnati’s contributions to OPERS for the years ending December 31, 2009, 2008, and 2007, were $2,337,000, $2,449,000, and $2,354,000, respectively, equal to the required contributions for each year. The Ohio Revised Code currently limits the City’s contribution to a rate not to exceed 14% of covered payroll. Active members do not make contributions to the OPEB Plan.

Other Postemployment Benefit Information

PlanU Description:U OPERS provides postemployment health care coverage to qualifying members of both the Traditional Pension and the Combined Plans. Members of the Member-Directed Plan do not qualify for ancillary benefits, including postemployment healthcare coverage.

OPERS maintains a cost-sharing multiple employer defined benefit post-employment healthcare plan, which includes a medical plan, prescription drug program and Medicare Part B premium reimbursement, to qualifying members of both the Traditional Pension and the Combined Plans. Members of the Member-Directed Plan do

107 not qualify for ancillary benefits, including postemployment healthcare coverage.

In order to qualify for postemployment healthcare coverage, age and service retirees under the Traditional Pension and Combined Plans must have ten or more years of qualifying Ohio service credit. Health care coverage for disability benefit recipients and qualified survivor benefit recipients is available. The health care coverage provided by OPERS meets the definition of an Other Postemployment Benefit (OPEB) as described in GASB statement 45. A portion of each employer's contribution to OPERS is set aside for the funding of postemployment health care.

FundingU Policy:U The Ohio Revised Code provides statutory authority requiring public employers to fund post employment healthcare through their contributions to OPERS. The Ohio Revised Code permits, but does not mandate, OPERS to provide OPEB to its eligible members and beneficiaries. Authority to establish and amend benefits is provided in Chapter 145 of the Ohio Revised Code. The City's contribution rate for 2009 was 14% of covered payroll. The portion of the employer contribution allocated to health care was 7.00% from January 1 through March 31, 2009 and 5.5% from April 1 through December 31, 2009. The portion of the City’s employer contributions that were used to fund postemployment benefits for the years ended December 31, 2009, 2008, and 2007 were $1,218,282, $1,224,683 and $938,774 respectively.

OPERS’ Post Employment Health Care plan was established under, and is administrated in accordance with, Internal Revenue Code 401(h). Each year, the OPERS Retirement Board determines the portion of the employer contribution rate that will be set aside for funding of post employment healthcare benefits. The OPERS Retirement Board is also authorized to establish rules for the payment of a portion of the healthcare benefits provided, by the retiree or their surviving beneficiaries. Payment amounts vary depending on the number of covered dependents and the coverage selected.

The Health Care Preservation Plan adopted by the OPERS Board of Trustees on September 9, 2004, was effective January 1, 2007. Member and employer contribution rates increased as of January 1, 2009, January 1, 2008, and January 1, 2007, which allowed additional funds to be allocated to the health care plan.

CityU of Cincinnati Retirement SystemU

Plan Description

The City of Cincinnati Retirement System is a cost-sharing multiple-employer defined benefit pension plan. The System provides retirement and disability benefits, annual cost of living adjustments, and death benefits to plan members and beneficiaries. The System is considered part of the City of Cincinnati's financial reporting entity and is included in the City's financial report as a pension trust fund, see pages 56 and 57. No separate financial report is issued. Article XV of the Administrative Code of the City of Cincinnati provides the statutory authority vesting the general administration and responsibility for the proper operation of the System in the Board of Trustees of the City of Cincinnati Retirement System. There are four employers that contribute to the plan. They are the City of Cincinnati, University of Cincinnati, University Hospital and Hamilton County. Membership of the Retirement System of the City consisted of the following at December 31, 2009, the date of the latest actuarial valuation:

108 PensionU U HealthU careU Retirees and beneficiaries receiving benefits 4,413 4,185

Terminated plan members entitled to future benefits 115 115

Active plan members: Vested 2,607 1,590

Nonvested 1,829U U 2,8462 Total 8,964 8,736

1,288 of the nonvested members are part-time employees who are included in the system to comply with the Omnibus Budget Reconciliation Act of 1990, which mandated the inclusion of certain classifications of employees either in state or municipal retirement systems or the Federal Insurance Contribution Act (Social Security). The City of Cincinnati's Retirement System covers the majorityof non-uniformed City employees and a closed group of members from other employers which includes employees of the University of Cincinnati and University Hospital who joined before control of these institutions was transferred to the State of Ohio, and former City employees staying with various operations transferred to the control of Hamilton County.

The service retirement allowance vests after five years of creditable service. Medical care benefits are provided after fifteen years of creditable service, or if hired before January 9, 1997 after reaching age sixty with at least five years of creditable service. Any member in service may retire at any age upon completing thirty or more years of membership service or at age 60 with at least five years creditable service, with a retirement allowance commencing immediately; or any member upon completing five years of creditable service before age sixty may retire with a retirement allowance commencing at age sixty, provided, however, at the time of election of the deferred annuity there is no loan outstanding against his contributions.

The annual retirement allowance is equal to 2.5% of the average of the three highest years' compensation multiplied by the number of years of membership service. Employees hired before July 12, 1998 elected either the 2.5% or a 2.22% formula, which factors in overtime pay and lump sum payments for vacation, sick leave and compensatory balances. All new employees hired July 12, 1998 and thereafter are subject to the 2.5% formula. Pensions are increased by 3% compounded annually, commencing one year after retirement. The System also provides death and disability benefits. These benefit provisions and all other requirements, are established by the Cincinnati Municipal Code.

In 2007, an Early Retirement Window (ERW) was offered to City employees who would have 28 or more years of service by December 31, 2007. Employees who elected the window were granted two additional years of service. The additional actuarial accrued liability associated with the ERW of approximately $42,300,000 will be funded by separate contributions made by the city over a 15 year time period. The contributions for 2009 was $2,353,816. The contribution will increase each year until 2015 when it will be $6,177,556 through 2023.

Contributions

Each member contributes at a rate of 7% of his salary until his retirement. This percent contributed by the employees is fixed by the fund's Board of Trustees on the basis of authority provided byChapter 203 Section 73 of the Cincinnati Municipal Code. In 2009, the municipal code was amended to increase the employee contribution amount. Beginning in 2010, the each member will contribute at a rate of 7.5% for 2010, 8% for 2011, 8.5% for 2012 and 9% for 2013 and all future years.

The City makes annual employer contributions based on a percentage of the salaries of all members. For 2009 the contribution rate was 17% for all employers and the covered payroll was $170,416,000. The rate based on

109 the actuarial report was 34.32%. The City’s contributions to the City of Cincinnati Retirement System for the years ending December 31, 2009, 2008 and 2007 were $26,650,000, $22,514,000, and $26,449,000 respectively. The contributions for 2009 and 2008 were not equal to the required contributions. Administrative costs are financed from the system assets.

As of December 31, 2009 for the pension plan the unfunded actuarial accrued liability was $494,331,387 to be amortized over an open period of 30 years, the funded ratio was 76.7%, and the actuarial value of assets was $1,631,407,000. The unfunded actuarial accrued liability as a percentage of covered payroll was 290.1%. The required supplementary schedule, which immediately follows the notes, contains multi-year trend information about the actuarial value of plan assets and if it is increasing or decreasing over time relative to the actuarial accrued liability for benefits.

Although this is a multiple-employer cost allocation plan, it is being accounted for as a single employer plan. This is due to the fact that the number of active participants from employers other than the City of Cincinnati is insignificant in relation to the total number of active City of Cincinnati participants.

Annual Pension Cost and Net Pension Obligation. The City’s annual pension cost and net pension obligation to CRS for the current year were as follows:

(Amounts in Thousands) 2009 2008 2007

Annual required contribution $ 43,065 $ 38,767 $ 16,753 Interest on net pension obligation 2,663 1,529 1,697 Adjustment to annual required contribution (3,740) (2,147) (1,979) Annual pension costs 41,988 38,149 16,471 Actual contribution (26,650) (23,969) (16,753) Increase(decrease) in net pension obligation 15,338 14,180 (282) Net pension obligation beginning of year 33,290 19,110 19,392 Net pension obligation end of year $ 48,628 $ 33,290 $ 19,110

Annual pension costs $ 41,988 $ 38,149 $ 16,471 Percentage of annual pension cost contribution 63.47% 62.83% 101.71%

Annual OPEB Costs and Net OPEB Obligation

(Amounts in Thousands) 2009 2008 2007

Annual required contribution $ 11,388 $ 22,767 $ 13,324 Interest on net OPEB 2,036 578 641 Adjustment to annual required contribution (2,859) (843) (747) Annual OPEB 10,565 22,502 13,218 Actual contribution (5,597) (4,275) (13,324) Increase(decrease) in net OPEB 4,968 18,227 (106) Net OPEB beginning of year 25,446 7,219 7,325 Net OPEB end of year $ 30,414 $ 25,446 $ 7,219

Annual pension costs $ 10,565 $ 22,502 $ 13,218 Percentage of annual pension cost contribution 52.98% 19.00% 100.80%

Summary of Significant Accounting Policies and Plan Asset Matters

110 Basis of Accounting - The City of Cincinnati Retirement System financial statements are prepared using the accrual basis of accounting. Plan member contributions are recognized in the period in which the contributions are due. Employer contributions to the plan are recognized when due and the employer has made a formal commitment to provide the contributions. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan.

Method Used to Value Investments - The Retirement System investments are reported at fair value. Short-term investments are reported at cost, which approximates fair value. Securities traded on national or international exchanges are valued at the last reported sales price at current exchange rates.

Securities Lending – The Retirement System securities lending program disclosures are presented in accordance with Governmental Accounting Standards Board Statement 28, Accounting and Financial Reporting for Securities Lending Transactions and Statement 40, Deposit and Investment Risk Disclosures. The disclosures are located in Footnote 2 – Deposits with Financial Institutions and Investments and on the statement of plan net assets and statement of changes in plan net assets.

Derivatives – The Retirement System derivative disclosures are presented in accordance with Governmental Accounting Standards Board Technical Bulletin No. 94 –1, Disclosures about Derivatives and Similar Debt and Investment Transactions, and Governmental Accounting Standards Board Statement 40, Deposit and Investment Risk Disclosures, and can be found in Footnote 2 – Deposits with Financial Institutions and Investments.

Other Postemployment Benefit Information

The System provides hospital and surgical insurance and dental and vision insurance to retired members who have earned fifteen years credited service at the time of termination or terminate after age sixty with five years credited service. Those who are receiving survivor benefits of eligible members are entitled to have their hospital and surgical insurance and dental and vision insurance premiums paid by the System. When benefits would be reduced by reason of the retired member's eligibility for hospital and medical benefits under federal social security laws, the System will pay whatever additional fees are required for the federal medical coverage.

The health care coverage provided by the System is considered an Other Postemployment Benefit (OPEB) as described in GASB statement 45. It is advance-funded on an actuarially determined basis as a portion of the employer contribution requirement to the System. The Cincinnati Municipal Code provides authority for employer contributions. The City of Cincinnati Retirement System’s healthcare coverage was established under, and is administrated in accordance with, Internal Revenue Code 401(h).

The actuarial assumptions used for the December 31, 2009 valuation included an assumption for hospital and surgical benefits recognizing adjusted premiums based on experience for recent years adjusted to current year by assumed annual increases in premium costs. The actuarial valuations for OPEB plans are estimates of the value of reported amounts and assumptions about the probability of events far into the future. Amounts determined are subject to continual revision as results are compared to past expectations and new estimates are made about the future.

The cost of OPEBs is recognized as an expense as claims are paid. The employer contribution that was used to fund postemployment benefits was $5,597,000 as of December 31, 2009 for the healthcare plan the unfunded actuarial accrued liability was $131,370,000 to be amortized over an open period of 30 years, the funded ratio was 85%, and the actuarial value of assets was $746,029,000. The unfunded actuarial accrued liability as a percentage of covered payroll was 77.1%. Calculations are based on the OPEB benefits provided under the terms of the plan in effect at the time of each valuation and on the pattern of cost sharing between the employer and the plan members at that point. The actuarial calculations of the OPEB plan reflect a long term perspective. The required supplementary schedule, which immediately follows the notes, contains multi-year trend

111 information about the actuarial value of plan assets and if it is increasing or decreasing over time relative to the actuarial accrued liability for benefits.

The information presented in the required supplementary schedules was determined as part of the actuarial valuations at the dates indicated. Additional information as of the latest actuarial valuation follows.

Valuation date 12/31/09

Actuarial cost method Individual entry age normal

Asset valuation method The actuarial value of assets was reset to market value of assets as of December 31, 2003. For future years, asset gains and losses will be recognized at the rate of 20% per year. The investment gain/(loss) is taken as the excess of the actual return on assets over the expected return on assets. The investment gain/(loss) is then recognized at 20% per year until fully recognized. The actuarial value of assets is the market value minus the sum of the deferred investment gains/(losses) during the preceding five plan years. In addition, the actuarial value is restricted to be no less than 80% of the market value or no more than 120% of the market value.

Actuarial assumptions: Investment rate of return 8% per year, net of expenses, compounded annually.

Mortality Non-disabled lives: Uninsured Pensioner 1994 Mortality Table projected to 2009 Disabled Retirees: Pension Benefit Guarantee Corp. Disabled Mortality Table

Turnover 2006 City of Cincinnati Rate of Termination Experience Table

Disability 2006 City of Cincinnati Disability Retirement Experience Table

Salary increases Salary increases are assumed to vary by service. For those who had not elected the 2.50% formula an additional 10% assumption increase in average salary is used to reflect final lump sum payments.

Medical Benefits: The City offers medical benefits (including outpatient prescription drug coverage) to retirees before and during Medicare eligibility. As of January 1, 2008, all future retirees will be covered by the 80/20 PPO plan. The employee contribution for 2009 is $189.60 per individual and $525 per family plan. Retirees who retired prior to 2008 may participate in either Modified PPO plan or if eligible the Modified Carve- Out PPO. To be eligible for the Carve-Out PPO, a retiree must have a pension system benefit of less $30,000 or less per year. Employees who retired under a special incentive plan in 2007 and are covered by the 80/20 PPO plan.

112 Starting claim costs were developed based on historical retiree claims and enrollment experience data projected forward to the valuation period with trend and adjusted for the demographics of the historical vs. current retiree population. Historical claims experience was reviewed from January 2003 through December 2007, with data split separately by plan, by medical and prescription drug coverage, and by Medicare status.

Some retirees may have dependent children covered under the retiree health plan. Their cost is included in the historical claims experience used to estimate the adult per capita rate.

Costs are determined on a per capita basis, adjusted to age 65, and annualized for presentation. Costs are developed by plan (Traditional, PPO and HMO), and blended based on the current and expected enrollment among plans.

For health plan projection/valuation purposes, the City’s valuation is split into two “Groups”. Group 1 refers to current inactive (retiree) participants and active participants hired prior to 1997. Group 2 refers to active participants hired in 1997 or later. The reason for this distinction is that the contribution methodology is materially different for those employees hired after January 8, 1997.

Retiree Contributions Group 1 participants covered by the Modified PPO or the Carve-out PPO plans do not contribute towards the cost of coverage. Group 1 participants covered by the 80/20 PPo contribute an amount equal to the active employee contribution. Group 2 future retirees will pay the higher of the active employee contribution or the portion of their cost determined by the point system.

Other Health Benefits MedicareU Part B:U The City reimburses the Medicare Part B premiums for retirees and dependents. Medicare Part B premiums are assumed to increase in accordance with estimates from the 2009 Annual Report of the Board of Trustee Report until the year 2017 (same as in last year’s valuation) and then increase at 5.0% per year thereafter. 2009 Part B Premiums are $1,326 ($1,157 in 2008).

Dental Benefits One traditional dental indemnity plan is provided to all current and future retirees. The plan includes a $1,000 annual maximum on plan benefits. 2009 projected starting cost is $266 per adult per year ($298 for the 2008 estimate). Costs are assumed to increase at a decreasing rate, starting at 5.80% for 2010, then decreasing gradually to 0% by2045. This takes the $1,000 annual maximum on annual dental claims into account.

Vision Benefits One indemnity design plan is provided to all current and

113 future retirees. The plan has fixed benefits with a $100 annual maximum benefit. The projected starting cost for 2009 is $22 per adult per year ($23 was the 2008 estimate). Although the claims benefit level is fixed, we anticipate a 3.0% annual trend increase in costs to account for increases in utilization/administrative costs. No aging impact is assumed in the vision coverage.

Option Electives 75% of male participants and 25% of female participants will have a spouse who is covered under the medical, dental, and vision benefits portions of the plan. Of these participants with a covered spouse, 85% will elect a Joint & Survivor option.

Expenses The investment return is set based on an implicit expense assumption of approximately 35 basis points.

114 REQUIRED

SUPPLEMENTARY INFORMATION

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116 REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF FUNDING PROGRESS

(AMOUNTS IN THOUSANDS) PENSION PLAN

Actuarial Unfunded % Actuarial Accrued Actuarial UAAL as a Value Liability Accrued % Percentage of Actuarial of (AAL) Liability Funded Covered Covered Valuation Assets -Entry Age (UAAL) Ratio Payroll Payroll Date (a) (b) (b-a) (a/b) (c) ((b-a)/c) 12/31/04 $ 1,607,444 $ 1,696,645 $ 89,201 $ 94.74 $ 182,575 $ 48.86 12/31/05 1,654,448 1,767,359 112,911 93.61 175,335 64.40 12/31/06 1,720,978 1,968,676 247,698 87.42 175,369 141.24 12/31/07 1,794,406 2,080,923 286,517 86.23 182,396 157.09 12/31/08 1,490,497 2,094,762 604,265 71.15 164,640 367.02 12/31/09 1,631,407 2,125,738 494,331 76.75 170,416 290.07

HEALTHCARE PLAN

Actuarial Unfunded % Actuarial Accrued Actuarial UAAL as a Value Liability Accrued % Percentage of Actuarial of (AAL) Liability Funded Covered Covered Valuation Assets -Entry Age (UAAL) Ratio Payroll Payroll Date (a) (b) (b-a) (a/b) (c) ((b-a)/c) 12/31/04 $ 753,105 $ 822,938 $ 69,833 $ 91.51 $ 182,575 $ 38.25 12/31/05 775,248 789,740 14,492 98.16 175,335 8.27 12/31/06 805,695 966,726 161,031 83.34 175,369 91.82 12/31/07 835,486 921,985 86,499 90.62 182,396 47.42 12/31/08 688,870 998,491 309,621 68.99 164,640 188.06 12/31/09 746,029 877,399 131,370 85.03 170,416 77.09

SCHEDULE OF EMPLOYERS' CONTRIBUTIONS

(AMOUNTS IN THOUSANDS) PENSION PLAN

Year Annual % Ended Required Percentage December 31 Contribution Contributed 2004 $ 29,857 48.77 2005 34,148 46.63 2006 23,227 107.40 2007 38,571 82.35 2008 38,767 61.83 2009 43,065 61.88

HEALTHCARE PLAN

Year Annual % Ended Required Percentage December 31 Contribution Contributed 2004 $ 9,953 48.00 2005 5,662 55.44 2006 18,242 20.25 2007 30,691 17.18 2008 22,767 18.78 2009 11,388 49.15 . ** Beginning in 2006 the calculation of the annual required contribution was revised to reflect the actual amounts required to fund healthcare. In prior years, healthcare amounts were calculated with funding limited per IRS restrictions. 117 City of Cincinnati, Ohio Budgetary Comparison Schedule Non GAAP For the year ended December 31, 2009 (Amounts in thousands)

General Fund Budgeted Amounts Variance with Actual Budget - Positive Original Final Amounts (Negative) General Fund Revenue Taxes $ 268,796 $ 247,483 $ 251,517 $ 4,034 Licenses and Permits 7,790 7,790 7,690 (100) Use of Money and Property 13,822 13,322 12,844 (478) Intergovernmental Revenue 50,832 45,125 44,120 (1,005) Charges for Services 19,363 19,363 20,408 1,045 Miscellaneous 4,374 4,374 6,757 2,383 Total Revenues 364,977 337,457 343,336 5,879

EXPENDITURES Current General Government 43,481 39,599 38,880 719 Community Development 6,501 6,408 6,389 19 Parks and Recreation 20,288 19,628 19,571 57 Public Safety 175,976 168,305 168,193 112 Transportation and Engineering 3,485 3,180 3,084 96 Public Services 19,594 20,645 20,557 88 Public Health 18,918 18,011 17,992 19 Employee Benefits 81,972 81,781 81,581 200 Capital Outlay 224 100 91 9

Total Expenditures 370,439 357,657 356,338 1,319

Excess (deficiency) of revenues over expenditures (5,462) (20,200) (13,002) 7,198

Other Financing Sources (Uses) Transfers In 3,023 11,178 11,178 Transfers (Out) (364) (364)

Total Other Financing Sources (Uses) 3,023 10,814 10,814 -

Excess of revenue over (under) Expenditures and Other Financing Sources (2,439) (9,386) (2,188) 7,198

Cancellation of Prior Years Encumbrances 2,560 2,920 360

Fund balances - beginning 14,577 14,577 14,577 Fund balances - ending $ 12,138 $ 7,751 $ 15,309 $ 7,558

Adjustments necessary to convert the results of operations at end of year on the budget basis to the modified accrual basis (GAAP) are as follows:

Excess (Deficiency) of revenues and other financing sources over (under) expenditures and other uses per the Budgetary Comparison Schedule $ (2,188)

(Increases) decreases from revenues: Received in cash during year but already accrued as receivables (GAAP) at December 31, 2008 (33,172) Accrued as receivables at December 31, 2009 but not recognized in budget 32,252 (Increases) decreases from encumbrances: Expenditures of amounts encumbered during prior years (12,269) Recognized as expenditures in the budget 11,705 (Increases) decreases from expenditures: Accrued as liabilities at December 31, 2008 recognized as expenditures (GAAP) but not in budget 6,207 Accrued as liabilities at December 31, 2009 (4,563) Inventory purchase recognized as expenditures (budget) but not in GAAP 14

Net Change in fund balance per the Statement of Revenues, Expenditures, and Changes in Fund Balance (Page 48) $ (2,014)

See notes to required supplementary information.

118 City Of Cincinnati, Ohio Note to the Required Supplementary Information December 31, 2009

Note A- Budgetary Data

An annual operating budget is legally adopted each fiscal year for the General Fund, Debt Service Fund, Capital Projects Fund and following Special Revenue Funds: Health Services, Street Construction Maintenance and Repair, Parking Meter, Cable TV, Income Tax Infrastructure, Income Tax Transit, Motor Vehicle License and Special Recreation. The budgetary data reports included within this report are prepared on a cash basis of accounting, with the exception of certain accrued personal service and employee benefit costs. Encumbrances, which do not lapse at year-end, are included as expenditures in the current year budget (Non-GAAP). The budgetary process begins at least six months prior to the calendar year for which the budget is to be adopted, with the City certifying the proposed budget to the County Auditor by July 20. By January 1, City Council may adopt annual or temporary appropriation measures using, in part, the official certificate of estimated resources approved by the County Budget Commission and tax rates certified by the County Auditor. By April 1, City Council must adopt annual appropriation ordinances. Only unencumbered appropriations lapse at year end.

There are several other special revenue appropriated funds whose revenues are mostly grants which are appropriated monthly as revenues are receipted. These funds include the special revenue fund: Recreation, Parks, Safety, Health, Cincinnati Blue Ash Airport, Community Development, Department of Labor Grants and Other. The budgets for these funds in the reports included herein are equivalent to the funds expenditures and annual encumbrances at year end. The budgeted revenue is the amount of resources available for expenditures within the year.

Some reimbursement grants funds are encumbered before revenue is receipted resulting in negative fund balances. The Community Development Fund ($9,201) and the Other Grants fund ($16,437) reflect negative fund balances at December 31, 2009.

The levels of appropriation control for each budgeted expenditure classification that may not be exceeded are: personal services, non-personal services, capital outlay, and debt service. Any revisions that alter the budgeted expenditure classification of any division within a City department must be approved by City Council. During the year, several supplementary appropriations were necessary.

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120 SUPPLEMENTARY INFORMATION

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122 MAJOR GOVERNMENTAL FUNDS

General Fund - is the general operating fund for the City. It is used to account for resources, traditionally associated with governments, which are not required to be accounted for in another fund.

Capital Projects Fund - is used primarily to account for resources designated to construct or acquire governmental fund capital assets. Such resources are derived principally from proceeds of general obligation debt, federal and state grants and City income tax.

Debt Service Fund - accounts for the resources accumulated and payments made for principal and interest on general obligation debt and capital lease payments of the governmental funds.

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124 CITY OF CINCINNATI, OH Schedule of Revenue, Expenditures and Changes in Fund Balance Budget(Non-GAAP Budgetary Basis) and Actual For the year ended December 31, 2009 (Amounts in Thousands) Variance with Final Budget Positive Original Budget Final Budget Actual (Negative) General Fund Revenue Taxes Real Property $ 23,679 $ 23,679 $ 23,490 $ (189) Personal Property - - 199 199 City Income Tax 240,723 219,804 223,800 3,996 Admissions 4,394 4,000 4,028 28

Total Taxes 268,796 247,483 251,517 4,034

Licenses and Permits Street Use 2,409 2,409 2,473 64 Health 57 57 3 (54) Police and Protective 54 54 59 5 Beer and Liquor 500 500 468 (32) Business and Merchandising 11 11 10 (1) Amusements 63 63 77 14 Professional and Occupational 198 198 181 (17) Buildings, Structures and Equipment 4,498 4,498 4,419 (79)

Total Licenses and Permits 7,790 7,790 7,690 (100)

Use of Money and Property Fines, Forfeits and Penalties 5,152 5,152 4,955 (197) Income from Treasury Investments 8,500 8,000 7,659 (341) Rents 160 160 205 45 General Concessions and Commissions 10 10 25 15

Total Use of Money and Property 13,822 13,322 12,844 (478)

Intergovernmental Revenue Proportionately shared State Taxes Local Government Fund - Sales, Franchise, State Income Tax 28,534 24,259 24,546 287 Local Government Fund - Financial Institution Tax 557 557 810 253 Estate Tax 16,432 15,000 13,187 (1,813) Public Utility Property Tax Reimbursement 551 551 615 64 State Income Tax - Real Property Tax Reduction 2,089 2,089 2,266 177 State Income Tax - Tangible Property Tax Reduction 2,669 2,669 2,696 27

Total Intergovernmental Revenue 50,832 45,125 44,120 (1,005)

Charges for Services General Government 8,250 8,250 9,115 865 Public Recreation - - 2 2 City Planning Other Inspection Certificates 1,303 1,303 1,234 (69) Elevator Certificates 590 590 591 1 Public Safety Police and Communication Charges 10 10 40 30 Motor Vehicle Response 50 50 2 (48) Impounded Vehicle Fees 1,500 1,500 1,467 (33) Protective Inspection Fees 120 120 203 83 Protective Service - Burglary Alarm 400 400 261 (139) Emergency Transportation Service 5,390 5,390 5,558 168 Other Public Safety Charges 100 100 130 30

Public Services Recycling Incentive Fee 350 350 355 5 Other Public Services Charges 150 150 529 379 Public Health Vital Statistics 1,034 1,034 812 (222) Clinic Fees 106 106 106 - Other Public Health charges 10 10 3 (7)

Total Charges for Current Services 19,363 19,363 20,408 1,045

Miscellaneous 4,374 4,374 6,757 2,383 Total Revenues 364,977 337,457 343,336 5,879 (Continued)

125 CITY OF CINCINNATI, OH Schedule of Revenue, Expenditures and Changes in Fund Balance Budget(Non-GAAP Budgetary Basis) and Actual For the year ended December 31, 2009 (Amounts in Thousands) Variance with Final Budget Positive Original Budget Final Budget Actual (Negative) General Fund (Continued)

Expenditures City Council Personal Services $ 1,428 $ 1,397 $ 1,363 $ 34 Non Personal Services 27 61 41 20 Total City Council 1,455 1,458 1,404 54

Office of the Mayor Personal Services 435 413 402 11 Non Personal Services 33 63 62 1 Total Office of the Mayor 468 476 464 12

Office of the Clerk of Council Personal Services 315 319 299 20 Non Personal Services 347 347 279 68 Total Office of the Clerk of Council 662 666 578 88

Department of Regional Computer Center Personal Services 69 54 54 - Non Personal Services 5,230 4,846 4,845 1 Total Regional Computer Center 5,299 4,900 4,899 1

Department of the City Manager Office of the City Manager Personal Services 1,001 957 922 35 Non Personal Services 1,212 1,439 1,422 17 Total Office of the City Manager 2,213 2,396 2,344 52

Division of Budget and Evaluation Personal Services 681 669 669 - Non Personal Services 87 57 54 3 Total Division of Budget and Evaluation 768 726 723 3

Division of Environmental Management Personal Services 200 172 172 - Non Personal Services 2,196 2,453 2,452 1 Total Division of Environmental Management 2,396 2,625 2,624 1

Division of Economic Development Personal Services 360 321 320 1 Non Personal Services 24 24 17 7 Total Division of Economic Development 384 345 337 8

Total Department of the City Manager 5,761 6,092 6,028 64

Citizen's Complaint Authority Personal Services 436 395 388 7 Non Personal Services 32 29 25 4 Total Citizen's Complaint Authority 468 424 413 11

Department of Law Personal Services 3,135 3,093 3,080 13 Non Personal Services 1,251 1,103 1,102 1 Total Department of Law 4,386 4,196 4,182 14

Department of Human Resources Personal Services 1,314 1,162 1,162 - Non Personal Services 435 426 328 98 Total Department of Human Resources 1,749 1,588 1,490 98

Department of Finance Office of the Director Personal Services 233 229 229 - Non Personal Services 35 35 28 7 Total Office of the Director 268 264 257 7

Division of Accounts and Audits Personal Services 851 796 773 23 Non Personal Services 74 89 86 3 Total Division of Accounts and Audits 925 885 859 26 (Continued)

126 CITY OF CINCINNATI, OH Schedule of Revenue, Expenditures and Changes in Fund Balance Budget(Non-GAAP Budgetary Basis) and Actual For the year ended December 31, 2009 (Amounts in Thousands) Variance with Final Budget Positive Original Budget Final Budget Actual (Negative) General Fund (Continued)

Expenditures Department of Finance Division of Treasury Personal Services $ 291 $ 262 $ 255 $ 7 Non Personal Services 160 146 139 7 Total Division of Treasury 451 408 394 14

Division of Risk Management Non Personal Services 170 125 125 - Total Division of Risk Management 170 125 125 -

Division of Income Tax Personal Services 2,043 2,005 2,003 2 Non Personal Services 622 480 466 14 Total Division of Income Tax 2,665 2,485 2,469 16

Division of Purchasing Personal Services 531 481 481 - Non Personal Services 125 85 83 2 Total Division of Purchasing 656 566 564 2

Division of Internal Audit Personal Services 347 311 311 - Non Personal Services 53 43 27 16 Total Division of Internal Audit 400 354 338 16

Total Department of Finance 5,535 5,087 5,006 81

Department of Community Development and Planning Office of the Director Personal Services 660 652 644 8 Non Personal Services 3,703 3,673 3,673 - Total Office of the Director 4,363 4,325 4,317 8

Division of Housing Development Personal Services 82 95 94 1 Non Personal Services 363 362 360 2 Capital Outlay 1 1 - 1 Total Division of Housing Development 446 458 454 4

Division of Community Development Personal Services 177 123 123 - Non Personal Services 318 319 311 8 Total Division of Community Development 495 442 434 8

Division of New Construction & Existing Building Standards Personal Services 1,043 1,030 1,030 - Non Personal Services 155 154 154 - Total Division of New Construction & Existing Building Standards 1,198 1,184 1,184 -

Total Department of Community Development 6,502 6,409 6,389 20

Department of City Planning Division of City Planning Personal Services 650 585 566 19 Non Personal Services 165 122 114 8 Total Division of City Planning 815 707 680 27

Division of Licenses and Permits Personal Services 3,209 3,076 3,044 32 Non Personal Services 559 491 441 50 Total Division of Licenses and Permits 3,768 3,567 3,485 82

Total Department of City Planning 4,583 4,274 4,165 109

Department of Public Recreation West Region Division Personal Services 2,097 2,064 2,063 1 Non Personal Services 682 677 676 1 Total West Region Division 2,779 2,741 2,739 2 (Continued)

127 CITY OF CINCINNATI, OH Schedule of Revenue, Expenditures and Changes in Fund Balance Budget(Non-GAAP Budgetary Basis) and Actual For the year ended December 31, 2009 (Amounts in Thousands) Variance with Final Budget Positive Original Budget Final Budget Actual (Negative) General Fund (Continued) Expenditures

East Region Division Personal Services $ 1,757 $ 1,621 $ 1,606 $ 15 Non Personal Services 678 672 672 - Total East Region Division 2,435 2,293 2,278 15

Department of Public Recreation Central Region Division Personal Services 1,858 1,815 1,808 7 Non Personal Services 672 667 667 - Total Central Region Division 2,530 2,482 2,475 7

Maintenance Division Personal Services 2,264 2,181 2,161 20 Non Personal Services 1,436 1,439 1,439 - Total Maintenance Division 3,700 3,620 3,600 20

Division of Athletics Personal Services 1,756 1,822 1,810 12 Non Personal Services 378 379 379 - Total Division of Athletics 2,134 2,201 2,189 12

Division of Waterfront Activities Personal Services 517 511 510 1 Non Personal Services 242 238 238 - Total Division of Waterfront Activities 759 749 748 1

Division of Administration Personal Services 978 955 955 - Non Personal Services 224 213 213 - Capital Outlay 23 13 12 1 Total Division of Administration 1,225 1,181 1,180 1

Total Department of Public Recreation 15,562 15,267 15,209 58

Department of Parks Office of the Director Personal Services 168 166 166 - Non Personal Services 3 3 3 - Total Office of the Director 171 169 169 -

Division of Operations and Facilities Personal Services 1,188 916 916 - Non Personal Services 1,218 1,173 1,173 - Total Division of Operations and Facilities 2,406 2,089 2,089 -

Division of Administration and Program Services Personal Services 1,330 1,274 1,274 - Non Personal Services 842 842 842 - Total Division of Administration and Program Services 2,172 2,116 2,116 -

Total Department of Parks 4,749 4,374 4,374 -

Department of Police Personal Services 88,930 85,503 85,503 - Non Personal Services 13,775 12,596 12,562 34 Total Department of Police 102,705 98,099 98,065 34

Department of Fire Personal Services 65,557 63,420 63,359 61 Non Personal Services 7,714 6,786 6,769 17 Capital Outlay 174 74 73 1 Total Department of Fire 73,445 70,280 70,201 79

Department of Transportation and Engineering Office of the Director Personal Services 345 453 441 12 Non Personal Services 96 88 69 19 Total Office of the Director 441 541 510 31 (Continued)

128 CITY OF CINCINNATI, OH Schedule of Revenue, Expenditures and Changes in Fund Balance Budget(Non-GAAP Budgetary Basis) and Actual For the year ended December 31, 2009 (Amounts in Thousands) Variance with Final Budget Positive Original Budget Final Budget Actual (Negative) General Fund (Continued) Expenditures

Department of Transportation and Engineering (Continued) Division of Transportation Planning Personal Services $ 184 $ 226 $ 226 $ - Non Personal Services 37 28 20 8 Total Division of Transportation Planning 221 254 246 8

Division of Engineering Personal Services 413 89 89 - Non Personal Services 156 126 73 53 Total Division of Engineering 569 215 162 53

Division of Traffic Engineering Personal Services 50 60 58 2 Non Personal Services 2,204 2,110 2,108 2 Total Division of Traffic Engineering 2,254 2,170 2,166 4

Total Department of Transportation and Engineering 3,485 3,180 3,084 96

Department of Public Services Office of the Director Personal Services 398 460 460 - Non Personal Services 164 104 88 16 Capital Outlay 6 6 - 6 Total Office of the Director 568 570 548 22

Division of Traffic and Road Operations Personal Services 626 498 485 13 Non Personal Services 1,472 3,555 3,555 - Total Traffic and Road Operations 2,098 4,053 4,040 13

Neighborhood Operations Division Personal Services 7,231 7,481 7,476 5 Non Personal Services 6,688 6,029 5,977 52 Total Neighborhood Operations Division 13,919 13,510 13,453 57

Division of City Facility Management Personal Services 248 214 214 - Non Personal Services 2,767 2,304 2,302 2 Total City Facility Management 3,015 2,518 2,516 2

Total Department of Public Services 19,600 20,651 20,557 94

Department of Public Health Office of the Commissioner Personal Services 1,294 1,179 1,179 - Non Personal Services 316 314 314 - Capital Outlay 20 6 6 - Total Office of the Commissioner 1,630 1,499 1,499 -

Office of Technical Resources Personal Services 1,328 1,360 1,353 7 Non Personal Services 859 844 842 2 Total Office of Technical Resources 2,187 2,204 2,195 9

Office of Community Health Services Personal Services 2,851 2,592 2,585 7 Non Personal Services 427 418 416 2 Total Office of Community Health Services 3,278 3,010 3,001 9

Division of Primary Care - Special Services Personal Services 2,736 2,721 2,721 - Non Personal Services 524 460 459 1 Total Division of Primary Care - Special Services 3,260 3,181 3,180 1

Division of Primary Care - Health Centers Personal Services 6,095 6,034 6,034 - Non Personal Services 965 754 754 - Total Division of Primary Care - Health Centers 7,060 6,788 6,788 - (Continued)

129 CITY OF CINCINNATI, OH Schedule of Revenue, Expenditures and Changes in Fund Balance Budget(Non-GAAP Budgetary Basis) and Actual For the year ended December 31, 2009 (Amounts in Thousands) Variance with Final Budget Positive Original Budget Final Budget Actual (Negative) General Fund (Continued)

Expenditures Division of School and Adolescent Health Personal Services 1,473 1,322 1,322 - Non Personal Services 50 13 13 - Total Division of School and Adolescent Health 1,523 1,335 1,335 -

Total Department of Public Health 18,938 18,017 17,998 19

Nondepartmental Accounts Pension Contributions to Pension System $ 12,942 $ 12,958 $ 12,958 $ - Contributions to State Pension System 1,485 1,485 1,370 115 Contributions to Police Pension System 17,309 17,462 17,461 1 Contributions to Fire Pension System 16,501 16,501 16,500 1 Employee Benefits Employee Insurance Benefits 31,514 31,075 31,075 - Public Employee Assistance 260 260 259 1 Workers' Compensation Insurance 956 956 956 - Police Officers and Firefighters' Insurance 300 300 225 75 State Unemployment Compensation 300 379 378 1 Lump Sum Payments 400 400 398 2 City Council Benefits 5 5 1 4 Professional Services and Legal Fees Judgments Against the City 1,500 1,500 1,500 - Audit and Examiners' Fees 275 275 275 - Hamilton County Treasurer's and Auditor's Fees 610 610 587 23 County Clerk Fees 350 350 350 - Election Expense 110 110 110 - Miscellaneous Accounts Memberships and Publications 100 100 64 36 Mayor's Office Obligations 20 20 15 5 Cincinnati Public Schools 5,000 5,000 5,000 - Port Authority of Greater Cincinnati 350 350 350 - Property Investment Reimbursement Agreements 2,000 2,000 2,000 - Reserve for Contingencies 2,800 123 - 123 Total Nondepartmental Accounts 95,087 92,219 91,832 387

Total Expenditures 370,439 357,657 356,338 1,319

Excess (deficiency) of revenues over (5,462) (20,200) (13,002) 7,198

Other Financing Sources (Uses) Transfers In 3,023 11,178 11,178 Transfers (Out) (364) (364)

Total Other Financing Sources (Uses) 3,023 10,814 10,814 - Excess (Deficiency) of Revenue over (under) Expenditures and Other Financing Sources (Uses) (2,439) (9,386) (2,188) 7,198

Cancellation of Prior Years Encumbrances - 2,560 2,920 360

Fund balances - beginning 14,577 14,577 14,577 Fund balances - ending $ 12,138 $ 7,751 $ 15,309 $ 7,558

130 City of Cincinnati, Ohio Statement of Revenue, Expenditures and Changes in Fund Balance For the year ended December 31, 2009 (Amounts in Thousands)

GENERAL FUND Revenue Taxes Real Property $ 23,755 Personal Property 199 City Income Tax 222,942 Admissions 4,027

Total Taxes 250,923

Licenses and Permits Street Use 2,474 Health 3 Police and Protective 59 Beer and Liquor 483 Business and Merchandising 10 Amusements 77 Professional and Occupational 182 Buildings, Structures and Equipment 4,421

Total Licenses and Permits 7,709

Use of Money and Property Fines, Forfeits and Penalties 4,967 Income from Treasury Investments 8,549 Rents 56 General Concessions and Commissions 24

Total Use of Money and Property 13,596

Intergovernmental Revenue Proportionately shared State Taxes Local Government Fund - Sales, Franchise, State Income Tax 24,073 Local Government Fund - Financial Institution Tax 810

(Continued)

131 City of Cincinnati, Ohio Statement of Revenue, Expenditures and Changes in Fund Balance For the year ended December 31, 2009 (Amounts in Thousands)

GENERAL FUND (Continued) Revenue State Income Tax - Real Property Tax Reduction $ 2,266 State Income Tax - Tangible Property Tax Reduction 2,696 Estate Tax 13,187 Public Utility Property Tax Reimbursement 615 Payments from Other Governmental Units 78 Revenues from Private Sources 67

Total Intergovernmental Revenue 43,792

Charges for Services General Government 6,954 Public Recreation 2 Buildings and Inspections Other Inspection Certificates 1,224 Elevator Certificates 605 Public Safety Police and Communication Charges 31 Impounded Vehicle Fees 1,442 Protective Inspection Fees 201 Protective Service - Burglary Alarm 320 Emergency Transportation Service 5,566 Other Public Safety Charges 175

Public Services 1,240

Public Health Vital Statistics 812 Clinic Fees 106 Other Public Health charges 2

Total Charges for Current Services 18,680

Miscellaneous 4,523 Total Revenues 339,223

(Continued)

132 City of Cincinnati, Ohio Statement of Revenue, Expenditures and Changes in Fund Balance For the year ended December 31, 2009 (Amounts in Thousands)

GENERAL FUND (Continued) Expenditures City Council $ 1,409

Office of the Clerk of Council 602

Office of the Mayor 478

Department of the City Manager Office of the City Manager 2,072 Division of Budget and Evaluation 732 Division of Environmental Management 2,603 Division of Economic Development 311 Total Department of City Manager 5,718

Citizen's Complaint Authority 419

Department of Law 4,079

Department of Human Resources 1,494

Department of Finance Office of the Director 249 Division of Accounts and Audits 847 Division of Treasury 395 Division of Risk Management 123 Division of Income Tax 2,506 Division of Purchasing 565 Division of Internal Audit 344 Total Department of Finance 5,029

Department of City Planning Office of the Director 683 Division of Licenses and Permits 3,541 Total Department of City Planning 4,224

(Continued)

133 City of Cincinnati, Ohio Statement of Revenue, Expenditures and Changes in Fund Balance For the year ended December 31, 2009 (Amounts in Thousands)

GENERAL FUND (Continued) Expenditures

Department of Community Development and Planning Office of the Director $ 4,651 Division of Housing Development 410 Division of Community Development 414 Division of New Construction & Existing Building Standards 1,201 Total Department of Community Development 6,676

Department of Public Recreation Division of Community Activities - West Region Division 2,714 Division of Community Activities - East Region Division 2,237 Division of Community Activities - Central Region Division 2,441 Division of Community Activities - Maintenance Division 3,560 Division of Athletics 2,196 Division of Waterfront Activities 738 Division of Administration 1,206 Total Department of Public Recreation 15,092

Department of Parks Administration and Program Services Office of the Director 171 Division of Operations and Facility Management 2,200 Division of Planning, Design and Development 2,059 Total Department of Parks Administration and Program Services 4,430

Department of Police 99,146

Department of Fire 70,452

(Continued)

134 City of Cincinnati, Ohio Statement of Revenue, Expenditures and Changes in Fund Balance For the year ended December 31, 2009 (Amounts in Thousands)

GENERAL FUND (Continued) Expenditures

Department of Transportation and Engineering Office of the Director $ 534 Division of Engineering 236 Division of Transportation Planning 307 Division of Traffic Engineering 2,408 Total Department of Transportation and Engineering 3,485

Department of Public Services Office of the Director 529 Division of Traffic and Road Operations 1,727 Division of Neighborhood Operations 13,638 Division of City Facility Management 2,649 Total Department of Public Services 18,543

Department of Regional Computer Center 4,911

Department of Public Health Office of the Commissioner 1,502 Division of Technical Resources 2,194 Division of Community Health Services 2,985 Division of Primary Care - Programs 3,261 Division of Primary Care - Health Centers 6,801 Division of Primary Care - Other 1,308 Total Department of Public Health 18,051

Nondepartmental Accounts Pension Contributions to City Pension System 11,151 Contributions to State Pension System 1,316 Contributions to Police and Fire Pension System for Police 15,432 Contributions to Police and Fire Pension System for Fire 14,507

(Continued)

135 City of Cincinnati, Ohio Statement of Revenue, Expenditures and Changes in Fund Balance For the year ended December 31, 2009 (Amounts in Thousands)

GENERAL FUND (Continued) Expenditures

Employee Benefits Employee Insurance Benefits $ 29,675 Public Employee Assistance 259 Workers' Compensation Insurance 852 Police Officers and Firefighters' Insurance 270 State Unemployment Compensation 392 Lump Sum Payments 209 City Council Staff Benefits 1 Professional Services and Legal Fees Judgments Against the City 624 Collaborative Policing Efforts 181 County Fees 937 Election Expense 86 Mayor's Office Obligations 6 Professional Memberships and Publications 64 Justice Department Policing Efforts - Cincinnati Public Schools 5,000 Audit Fees 235 Port Authority of Greater Cincinnati 350 Property Investment Reimbursement Agreements 3,513 Total Nondepartmental Accounts 85,060

Total Expenditures 349,298

Excess (Deficiency) of revenues over expenditures (10,075)

(Continued)

136 City of Cincinnati, Ohio Statement of Revenue, Expenditures and Changes in Fund Balance For the year ended December 31, 2009 (Amounts in Thousands)

GENERAL FUND (Continued)

Other Financing Sources(Uses) Transfers In $ 11,354 Transfers (Out) (3,293)

Total Other Financing Sources (Uses) 8,061

Excess (Deficiency) of Revenue and Other Financing Sources (2,014)

Fund balances, January 1 66,697 Restatement of Fund Balance 25,312 Restated Fund Balance, January 1 92,009

Fund balances, December 31 $ 89,995

137 CITY OF CINCINNATI, OH Schedule of Revenue, Expenditures and Changes in Fund Balance Budget(Non-GAAP Budgetary Basis) and Actual For the year ended December 31, 2009 (Amounts in Thousands) Variance with Final Budget Positive Budget Actual (Negative) Capital Project Funds

Revenue Taxes $ 35,395 $ 35,395 $ - Use of Money and Property 2,154 2,154 - Special Assessments 10 10 - Intergovernmental Revenue 2,636 2,636 - Federal Grants 1,392 1,392 - State Grants and Subsidies 25,577 25,577 - Miscellaneous 6,562 6,562 - Total Revenues 73,726 73,726 -

Capital Outlay Expenditures Regional Computer Center 1,408 1,408 -

Department of the City Manager Office of the City Manager 3,927 3,927 - Division of Environmental Management 532 532 - Division of Economic Development 2,566 2,566 -

Total Department of the City Manager 7,025 7,025 -

Department of Human Resources 651 651 -

Department of Finance Division of Treasury 12 12 - Division of Income Tax 56 56 - Division of Purchasing 38 38 -

Total Department of Finance 106 106 -

Department of Community Development and Planning Office of the Director 208 208 - Division of Housing Development 15,397 15,397 - Division of Community Development 8,633 8,633 - Division of New Construction and Building Standards 359 359 -

Total Department of Community Development 24,597 24,597 -

Department of City Planning Division of City Planning 489 489 - Division of License and Permits 8 8 -

Total Department of City Planning 497 497 -

Department of Public Recreation Division of Golf Activities 1,162 1,162 - Division of Waterfront Activities 319 319 - Division of Support Services 9,603 9,603 -

Total Department of Public Recreation 11,084 11,084 -

Department of Parks Division of Operations and Facilities 11 11 - Division of Administration and Program Services 10,066 10,066 -

Total Department of Parks 10,077 10,077 -

Department of Building and Inspections Division of Building Inspections 170 170 -

Total Department of Buildings and Inspections 170 170 -

(Continued)

138 CITY OF CINCINNATI, OH Schedule of Revenue, Expenditures and Changes in Fund Balance Budget(Non-GAAP Budgetary Basis) and Actual For the year ended December 31, 2009 (Amounts in Thousands) Variance with Final Budget Positive Final Actual (Negative) Capital Project Funds (Continued) Capital Outlay Expenditures

Department of Police $ 1,178 $ 1,178 $ -

Department of Fire 396 396 -

Department of Transportation and Engineering Office of the Director 112 112 - Division of Transportation Planning 8,012 8,012 - Division of Engineering 78,364 78,364 - Division of Aviation 76 76 - Division of Traffic Engineering 2,931 2,931 -

Total Department of Transportation and Engineering 89,495 89,495 -

Department of General Services Division of Convention Center 633 633 - Division of Parking Facilities 5,582 5,582 -

Total Department of General Services 6,215 6,215 -

Department of Public Services Division of Traffic and Road Operations 578 578 - Neighborhood Operations Division 88 88 - Division of City Facility Management 28,309 28,309 -

Total Department of Public Services 28,975 28,975 -

Department of Public Health Office of the Commissioner 1,054 1,054 -

Total Department of Public Health 1,054 1,054 -

Department of Sewers Office of the Director 2,420 2,420 -

Total Department of Sewers 2,420 2,420 -

Total Capital Outlay Expenditures 185,348 185,348 -

Other Expenditures

Department of the City Manager Non Personal Services 12 12 -

Department of Law Non Personal Services 1 1 -

Department of Finance Office of the Director Non Personal Services 10 10 -

Division of Accounts and Audits Non Personal Services 4,541 4,541 - Debt Service 7,642 7,642 -

Department of Community Development and Planning Division of Community Development Non Personal Services 436 436 -

Department of Parks Division of Administration and Program Services Non Personal Services 30 30 -

Motorized Equipment 9,440 9,440 -

Total Other Expenditures 22,112 22,112 -

Total Expenditures 207,460 207,460 -

Excess (deficiency) of revenues over expenditures (133,734) (133,734) - (Continued)

139 CITY OF CINCINNATI, OH Schedule of Revenue, Expenditures and Changes in Fund Balance Budget(Non-GAAP Budgetary Basis) and Actual For the year ended December 31, 2009 (Amounts in Thousands) Variance with Final Budget Positive Final Actual (Negative) Capital Project Funds (Continued) Other Expenditures

Other Financing Sources (Uses) Bond Proceeds $ 79,490 $ 79,490 $ - Transfers In 93,632 93,632 - Transfers (Out) (130) (130) -

Total Other Financing Sources (Uses) 172,992 172,992 - Excess (Deficiency) of Revenue over (under) Expenditures and Other Financing Sources (Uses) 39,258 39,258 -

Cancellation of Prior Years Encumbrances - - -

Fund balances - beginning 191,057 191,057

Fund balances - ending $ 230,315 $ 230,315 $ -

140 CITY OF CINCINNATI, OH Schedule of Revenue, Expenditures and Changes in Fund Balance Budget(Non-GAAP Budgetary Basis) and Actual For the year ended December 31, 2009 (Amounts in Thousands) Variance with Final Budget Positive Budget Actual (Negative) Debt Service Fund Revenue Taxes $ 40,925 $ 40,925 $ - Use of Money and Property 27,573 27,573 - Intergovernmental Revenue 5,833 5,833 - Miscellaneous Revenue 2,428 2,428 -

Total Revenues 76,759 76,759 -

Expenditures Department of the City Manager Office of the City Manager Capital Outlay 282 282 - Debt Service 1,411 1,411 - Total Office of the City Manager 1,693 1,693 -

Division of Economic Development Non Personal Services 166 166 - Capital Outlay 3,006 3,006 - Total Division of Economic Development 3,172 3,172 -

Total Department of the City Manager 4,865 4,865 -

Department of Finance Division of Accounts and Audits Personal Services 123 123 - Non Personal Services 936 936 - Debt Service 430 430 - Total Division of Accounts and Audits 1,489 1,489 -

Division of Treasury Personal Services 163 163 - Non Personal Services 1,409 1,409 - Debt Service 89,340 89,340 - Total Division of Treasury 90,912 90,912 -

Total Department of Finance 92,401 92,401 -

Department of Community Development and Planning Division of Housing Development Non Personal Services 177 177 - Capital Outlay 985 985 - Debt Service 4,123 4,123 - Total Division of Housing Development 5,285 5,285 -

Division of Community Development Debt Service 49 49 - Total Division of Community Development 49 49 -

Total Department of Community Development 5,334 5,334 -

Urban Planning Non Personal Services 55 55 - Debt Service 6,957 6,957 - Total Urban Planning 7,012 7,012 -

Total Expenditures 109,612 109,612 -

Excess (deficiency) of revenues over (32,853) (32,853) -

Other Financing Sources (Uses) General Obligation Bond Proceeds 30,373 30,373 - Bond Premiums 1,279 1,279 - Revenue Bond Proceeds 12,770 12,770 - Operating Transfers In 63,581 63,581 - Operating Transfers (Out) -

Total Other Financing Sources (Uses) 108,003 108,003 - Excess (Deficiency) of Revenue over (under) Expenditures and Other Financing Sources (Uses) 75,150 75,150 -

Fund balances - beginning 65,282 65,282 Fund balances - ending $ 140,432 $ 140,432 $ -

141 (This page intentionally left blank.)

142 CITY OF CINCINNATI, OHIO

NONMAJOR GOVERNMENTAL FUNDS ___

SPECIAL REVENUE FUNDS

Health Services Fund - Used to improve, establish, expand, and/or maintain health services to the citizens of Cincinnati.

Street Construction, Maintenance and Repair Fund - Used to account for street maintenance, repair and cleaning, and the operation and maintenance of traffic signals. Financing is provided by the City's share of State-levied Motor Vehicle License Tax, Gasoline Tax, and reimbursements of expenses.

Parking Meter Fund - Used to account for resources provided by collections from parking meters.

Cable T.V. Fund - Used to account for the proceeds of cable franchise fees received from the cable provider.

Income Tax Infrastructure Fund - Used to account for the proceeds of a .1% levy on earned income for infrastructure purposes.

Income Tax Transit Fund - Used to account for the proceeds of a .3% levy on earned income for transit purposes.

Motor Vehicle License Fund - Used to account for resources provided by the locally levied Municipal Motor Vehicle License Tax.

Special Recreation Fund - Used to account for monies received for special activities such as enrichment exercise programs or caretaker services.

Recreation - Used to account for Federal funds, private contributions, and user fees, and for expenditures made for special recreation activities.

Parks - Used to account for State funds, private contributions, and user fees, and for expenditures made for special parks activities.

Safety - Used to account for Federal and State funds and private contributions, and for expenditures made for public safety purposes.

Health - Used to account for Federal and State funds, private contributions and user fees, and for expenditures made for public health purposes.

Cincinnati Blue Ash Airport - Used to account for the revenue and the expenditures for the operation and maintenance of a municipal airport.

Community Development - Used to account for Federal funds received for city-wide development operations.

Department of Labor Grants - Used to account for Federal funds received for the relief of unemployment through jobs and training.

Other - Used to account for Federal and State funds, private contributions and user fees, and for expenditures for specific purposes not otherwise designated.

Bettman Nature Center - Used to account for the investment and expenditure of bequests made for the Bettman Nature Center.

143

CITY OF CINCINNATI, OHIO ____

PERMANENT FUNDS

Groesbeck Endowment - Used to account for the investment and expenditure of bequests made for the cost of music concerts in Burnet Woods.

Schmidlapp Park Music - Used to account for the investment and expenditure of bequests made for the cost of music concerts in Eden Park.

Joanna Peters Bequest - Used to account for the investment and expenditure of bequest made for the treatment of alcoholism.

W. M. Ampt Music Endowment - Used to account for the investment and expenditure of bequests made for the cost of concerts in various City parks.

Crosley Field Trust - Used to account for the investment and expenditure of bequests made for the maintenance of the Crosley Field Sports Complex.

Kroger Trust - Used to account for the investment and expenditure of a bequest made for the maintenance of the Hartwell Recreation Center.

Yeatman's Cove Park Trust - Used to account for the investment and expenditure of a bequest made for the maintenance of the Yeatman's Cove Park.

Park Board Fund - Used to account for the investment and expenditure of bequests related to the maintenance and improvement of Fleischmann Gardens, the Geier Esplanade, and various citywide parks.

144 CITY OF CINCINNATI, OHIO Combining Balance Sheet Nonmajor Governmental Funds December 31, 2009 (Amounts in Thousands) Special Revenue Funds Street Construction Motor Health Maintenance Parking Cable Income Tax Income Tax Vehicle Special Services and Repair Meter T.V. Infrastructure Transit License Recreation ASSETS Cash and Equivalents $ $ $ $ $ $ $ $ - Equity in City Treasury Cash 1,175 3,800 1,129 2,997 4,434 7,225 984 2,064 Investments ------Receivables: Taxes - - - - 2,052 6,157 - - Accounts, Net 619 1 - 32 111 - 1 22 Accrued Interest - - - 4 - 122 - 34 Due from Other Funds 24 108 23 261 149 145 22 42 Due from Other Governments - 3,835 - - - - 1,251 - Inventory - - - - 155 - 58 - Advances to Other Funds - 496 ------Total Assets $ 1,818 $ 8,240 $ 1,152 $ 3,294 $ 6,901 $ 13,649 $ 2,316 $ 2,162 LIABILITIES AND FUND BALANCES Liabilities: Accounts Payable $ 45 $ 76 $ 70 $ 212 $ 137 $ 59 $ 100 $ 31 Due to Other Funds 22 535 1 196 178 - 173 7 145 Accrued Payroll 91 442 3 102 482 - 149 68 Accrued Liabilities 4 7 - 2 10 - 2 2 Deposits Payable - 6 - 225 1 - - - Deferred Revenue 2,531 3 720 2,250 845 25 Estimated Liability for Unpaid Claims 11 Total Liabilities 162 3,597 74 740 1,539 2,309 1,269 133 Fund Balances: Nonspendable 496 155 58 Restricted 4,147 5,207 11,340 989 1 Assigned 1,656 1,078 2,554 2,028 Unassigned Total Fund Balances 1,656 4,643 1,078 2,554 5,362 11,340 1,047 2,029 Total Liabilities and Fund Balances $ 1,818 $ 8,240 $ 1,152 $ 3,294 $ 6,901 $ 13,649 $ 2,316 $ 2,162 CITY OF CINCINNATI, OHIO Combining Balance Sheet Nonmajor Governmental Funds December 31, 2009 (Amounts in Thousands) Special Revenue Funds Cincinnati Department Bettman Blue Ash Community of Labor Nature Recreation Parks Safety Health Airport Development Grants Other Center ASSETS Cash and Equivalents $ 6 $ 1,558 $ - $ - $ - $ - $ - $ 20 $ 29 Equity in City Treasury Cash 2,934 2,365 18,567 2,277 125 975 477 12,653 - Investments - 3,359 ------1,227 Receivables: Accounts, Net - 1 686 569 62 - - 496 - Special Assessments - - - - - 5,418 - 3,935 - Accrued Interest 47 39 181 ------Due from Other Funds 59 48 376 46 3 27 10 255 - Due from Other Governments 10 - 138 334 - 2,043 - 1,963 - Inventory - - - 156 - - - 101 - Advances to Other Funds 25 ------991 - Total Assets $ 3,081 $ 7,370 $ 19,948 $ 3,382 $ 190 $ 8,463 $ 487 $ 20,414 $ 1,256 LIABILITIES AND FUND BALANCE Liabilities: Accounts Payable $ 14 $ 5 $ 370 $ 528 $ 1 $ 2,355 $ $ 2,404 $ Due to Other Funds - 5 492 70 1 28 - 83 -

146 Accrued Payroll - 17 70 380 - 67 - 80 - Accrued Liabilities - - 1 11 - 134 - 2,478 - Deposits Payable - - 1,879 ------Deferred Revenue 45 29 219 284 7,460 2,776 Advances from Other Funds - - 991 - - - - 125 - Total Liabilities 59 56 4,022 1,273 2 10,044 7,946 Fund Balances: Nonspendable 25 - - 156 - 1,092 - Restricted 2,705 5,454 5,852 1,032 40 487 7,400 1,256 Assigned 292 1,860 10,074 921 148 - 3,976 Unassigned - - - - (1,581) - - Total Fund Balances 3,022 7,314 15,926 2,109 188 (1,581) 487 12,468 1,256 Total Liabilities and Fund Balances $ 3,081 $ 7,370 $ 19,948 $ 3,382 $ 190 $ 8,463 $ 487 $ 20,414 $ 1,256 CITY OF CINCINNATI, OHIO Combining Balance Sheet Nonmajor Governmental Funds December 31, 2009 (Amounts in Thousands) Permanent Funds Total Groesbeck Schmidlapp Joanna The W.M. Ampt Crosley Yeatman's Park Nonmajor Endowment Park Music Peters Music Field Kroger Cove Park Board Governmental Fund Fund Bequest Endowment Fund Trust Trust Trust Fund Funds ASSETS Cash and Equivalents $ - $ - $ - $ - $ 49 $ - $ - $ 113 $ 1,775 Equity in City Treasury Cash 39 50 112 126 - 83 591 - 65,182 Investments, at Fair Value 347 - - 140 656 - - 5,334 11,063 Receivables: Taxes ------8,209 Accounts, Net ------2,600 Special Assessments ------9,353 Accrued Interest - 1 2 3 - 1 11 - 445 Due from Other Funds 1 1 2 3 - 2 12 - 1,619 Due from Other Governments ------9,574 Inventory ------470 Advances to Other Funds ------1,512 Total Assets $ 387 $ 52 $ 116 $ 272 $ 705 $ 86 $ 614 $ 5,447 $ 111,802 LIABILITIES AND FUND BALANCES Liabilities: Accounts Payable $ - $ - $ - $ - $ - $ - $ - $ - $ 6,407 147 Due to Other Funds ------1,791 Accrued Payroll ------1,951 Accrued Liabilities ------2,651 Deposits Payable ------2,111 Deferred Revenue - 1 1 2 1 8 17,200 Estimated Liability for Unpaid Claims 11 Advances from Other Funds ------1,116 Total Liabilities 1 1 2 1 8 33,238 Fund Balances: Nonspendable 378 50 261 225 50 501 3,447 Restricted 9 1 115 9 480 35 105 5,447 52,111 Assigned - - - 24,587 Unassigned - - - (1,581) Total Fund Balances 387 51 115 270 705 85 606 5,447 78,564 Total Liabilities and Fund Balances $ 387 $ 52 $ 116 $ 272 $ 705 $ 86 $ 614 $ 5,447 $ 111,802 CITY OF CINCINNATI, OHIO Combining Statement of Revenue, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended December 31, 2009 (Amounts in Thousands)

Special Revenue Funds Street Construction Motor Health Maintenance Parking Cable Income Tax Income Tax Vehicle Special Services and Repair Meter T.V. Infrastructure Transit License Recreation REVENUES Taxes $ - $ - $ - $ - $ 14,383 $ 43,150 $ - $ - Licenses and Permits - - - 2,970 - - - - Use of Money and Property - - - - - 176 - 377 Special Assessments ------Intergovernmental Revenue - 9,525 - 17 - - 2,499 - Federal Grants ------70 State Grants and Subsidies ------Charges for Current Services 4,165 1 - - 15 - - 3,585 Miscellaneous - - - 1 - - Total Revenues 4,165 9,526 2,987 14,399 43,326 2,499 4,032 EXPENDITURES Current: General Government 106 - 112 2,165 2,057 492 112 160 Community Development - - - 140 - 163 - - 148 Parks and Recreation - 284 - - 1,485 21 - 3,334 Public Safety - - 359 - - - - - Transportation and Engineering - - 588 - 3,404 78 - - Public Services - 6,524 - 37 3,694 - 1,946 - Transit System - - - - - 46,536 - - Public Health 3,338 ------Employee Benefits 533 2,355 58 494 3,617 - 548 162 Capital Outlay - - - - 3 - - 18 Total Expenditures 3,977 9,163 1,117 2,836 14,260 47,290 2,606 3,674 Excess (Deficiency) of Revenues over (under) Expenditures 188 363 (1,117) 151 139 (3,964) (107) 358 OTHER FINANCING SOURCES (USES) Transfers In - - 1,239 - - - - 11 Transfers (Out) - - - (215) - (100) - - Total Other Financing Sources (Uses) 1,239 (215) (100) 11

Net Change in Fund Balances 188 363 122 (64) 139 (4,064) (107) 369

Fund Balances, January 1 1,468 4,280 956 2,618 5,223 15,404 1,154 1,660

Fund Balances, December 31 $ 1,656 $ 4,643 $ 1,078 $ 2,554 $ 5,362 $ 11,340 $ 1,047 $ 2,029 CITY OF CINCINNATI, OHIO Combining Statement of Revenue, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds For the year ended December 31, 2009 (Amounts in Thousands)

Special Revenue Funds

Cincinnati Department Bettman Blue Ash Community of Labor Nature Recreation Parks Safety Health Airport Development Grants Other Center REVENUES Taxes $ - $ - $ - $ - $ - $ - $ - $ 1,883 $ - Licenses and Permits - - 277 1,085 - - - 4 - Use of Money and Property 100 472 254 - 91 391 - 1,189 184 Special Assessments - - - 3 - 38 - 4,332 - Intergovernmental Revenue - - 5,224 1,480 - - - - - Federal Grants 385 - 5,336 7,556 - 13,632 115 12,303 - State Grants and Subsidies 161 22 374 283 - - - 1,598 - Charges for Current Services 11 668 1,626 3,428 - 57 - 1,753 - Miscellaneous - 629 24 168 - 2,100 - 371 - Total Revenues 657 1,791 13,115 14,003 91 16,218 115 23,433 184

EXPENDITURES Current: General Government - - 4,487 135 - 1,888 - 7,921 - Community Development - - - - - 1,870 116 2,278 -

149 Parks and Recreation 541 1,391 - - - - - 2,205 8 Public Safety - - 9,630 - - - - 1,330 - Transportation and Engineering - - - - 279 - - 388 - Public Services - - - - - 19 - 2,786 - Transit System ------1 - Public Health - - - 12,881 - 5 - - - Employee Benefits - 2 10 2,038 - 593 - 13 - Capital Outlay - - 1,108 - - 14,125 - 7,451 - Debt Service: ------Interest - - 49 - - 270 - - - Total Expenditures 541 1,393 15,284 15,054 279 18,770 116 24,373 8 Excess (Deficiency) of Revenues over (under) Expenditures 116 398 (2,169) (1,051) (188) (2,552) (1) (940) 176 OTHER FINANCING SOURCES (USES) Transfers In 18 279 36 - - 1,590 - 3,834 - Transfers (Out) - - (499) - - - - - (40) Total Other Financing Sources (Uses) 18 279 (463) 1,590 3,834 (40) Net Change in Fund Balances 134 677 (2,632) (1,051) (188) (962) (1) 2,894 136 Fund Balances, January 1 2,888 6,637 18,558 3,160 376 (619) 488 9,574 1,120 Fund Balances, December 31 $ 3,022 $ 7,314 $ 15,926 $ 2,109 $ 188 $ (1,581) $ 487 $ 12,468 $ 1,256 CITY OF CINCINNATI, OHIO Combining Statement of Revenue, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds For the year ended December 31, 2009 (Amounts in Thousands) Permanent Funds Total Groesbeck Schmidlapp Joanna The W.M. Ampt Crosley Yeatman's Park Nonmajor Endowment Park Music Peters Music Field Kroger Cove Park Board Governmental Fund Fund Bequest Endowment Fund Trust Trust Trust Fund Funds REVENUES Taxes $ - $ - $ - $ - $ - $ - $ - $ - $ 59,416 Licenses and Permits ------4,336 Use of Money and Property 9 2 4 7 85 2 14 1,117 4,474 Special Assessments ------4,373 Intergovernmental Revenue ------18,745 Federal Grants ------39,397 State Grants and Subsidies ------2,438 Charges for Current Services ------15,309 Miscellaneous ------3,293 Total Revenues 9 2 4 7 85 2 14 1,117 151,781 EXPENDITURES Current: General Government ------19,635 Community Development ------4,567 Parks and Recreation - 2 - - 7 - 1 33 9,312 150 Public Safety ------11,319 Transportation and Engineering ------4,737 Public Services ------15,006 Transit System ------46,537 Public Health ------16,224 Employee Benefits ------10,423 Capital Outlay ------22,705 Debt Service : ------Interest ------319 Total Expenditures 2 7 1 33 160,784 Excess (Deficiency) of Revenues over Expenditures 9 4 7 78 2 13 1,084 (9,003) OTHER FINANCING SOURCES (USES) Transfers In ------7,007 Transfers (Out) (18) - - (9) (18) - - (212) (1,111) Total Other Financing Sources (Uses) (18) (9) (18) (212) 5,896 Net Change in Fund Balances (9) 4 (2) 60 2 13 872 (3,107) Fund Balances, January 1 396 51 111 272 645 83 593 4,575 81,671 Fund Balances, December 31 $ 387 $ 51 $ 115 $ 270 $ 705 $ 85 $ 606 $ 5,447 $ 78,564 City of Cincinnati, Ohio Schedule of Revenue, Expenditures and Changes in Fund Balance Budget(Non-GAAP Budgetary Basis) and Actual For the year ended December 31, 2009 (Amounts in Thousands)

Variance with Budget - Positive Budget Actual (Negative) HEALTH SERVICES FUND

REVENUES Charges for Current Services $ 3,556 $ 3,751 $ 195

Total Revenues 3,556 3,751 195

EXPENDITURES Department of Public Health Division of Primary Care - Special Programs Personal Services 80 80 - Non-Personal Services 77 77 -

Total Division of Primary Care - Special Programs 157 157 -

Division of Primary Care - Health Centers Personal Services 1,415 1,415 - Non-Personal Services 1,824 1,823 1

Total Division of Primary Care - Health Centers 3,239 3,238 1

Total Department of Health 3,396 3,395 1

Nondepartmental Accounts Contribution to Pension System 262 259 3 Employee Insurance Benefits 270 265 5 Public Employee Assistance 1 1 - Workers' Compensation Insurance 6 6 - General Fund Overhead Charge 106 106 - Total Nondepartmental Accounts 645 637 8

Total Expenditures 4,041 4,032 9

Excess (Deficiency) of Revenues over (under) Expenditures (485) (281) 204

Cancellation of Prior Year Encumbrances 149 149

Fund Balance - January 1 1,114 1,114

Fund Balance - December 31 $ 629 $ 982 $ 353

151 City of Cincinnati, Ohio Schedule of Revenue, Expenditures and Changes in Fund Balance Budget(Non-GAAP Budgetary Basis) and Actual For the year ended December 31, 2009 (Amounts in Thousands)

Variance with Budget - Positive Budget Actual (Negative) STREET CONSTRUCTION, MAINTENANCE AND REPAIR FUND

REVENUES Intergovernmental Revenue Motor Vehicle License $ 2,000 $ 1,831 $ (169) Gasoline 6,785 7,844 1,059 Miscellaneous 715 803 88

Total Revenues 9,500 10,478 978

EXPENDITURES Department of Parks Operations and Facility Management Non-Personal Services 295 295 - Total Operations and Facility Management 295 295 -

Total Department of Parks 295 295 -

Department of Public Services Traffic and Road Operations Division Personal Services 2,768 2,756 12 Non-Personal Services 2,510 2,509 1 Capital Outlay 21 21 - Total Traffic and Road Operations Division 5,299 5,286 13

Neighborhood Operations Division Personal Services 2,405 2,184 221 Non-Personal Services 398 303 95 Total Neighborhood Operations Division 2,803 2,487 316

Total Department of Public Services 8,102 7,773 329

Nondepartmental Accounts Contribution to Pension System 1,135 1,052 83 Employee Insurance Benefits 1,279 1,217 62 Public Employee Assistance 6 - 6 Workers' Compensation Insurance 23 23 - State Unemployment Compensation 44 44 - Total Nondepartmental Accounts 2,487 2,336 151

Total Expenditures 10,884 10,404 480

Excess (Deficiency) of Revenues over (under) Expenditures (1,384) 74 1,458

Cancellation of Prior Year Encumbrances - 191 191

Fund Balance - January 1 2,550 2,550

Fund Balance - December 31 $ 1,166 $ 2,815 $ 1,649

152 City of Cincinnati, Ohio Schedule of Revenue, Expenditures and Changes in Fund Balance Budget(Non-GAAP Budgetary Basis) and Actual For the year ended December 31, 2009 (Amounts in Thousands)

Variance with Budget - Positive Budget Actual (Negative) PARKING METER FUND

REVENUES Miscellaneous $ 1,239 $ 1,262 $ 23

Total Revenues 1,239 1,262 23

EXPENDITURES

Department of Police Personal Services 359 359 - Total Department of Police 359 359 -

Department of Transportation & Engineering Division of Traffic Engineering Personal Services 99 64 35 Non-Personal Services 622 589 33 Total Department of Transportation and Engineering 721 653 68

Nondepartmental Accounts Contribution to Pension System 38 38 - Employee Insurance Benefits 17 17 - Public Employee Assistance 1 1 - Workers' Compensation Insurance 2 2 - Downtown Special Improvement District 90 84 6 Reserve for Contingencies 50 0 50 Total Nondepartmental Accounts 198 142 56

Total Expenditures 1,278 1,154 124

Excess (Deficiency) of Revenues over (under) Expenditures (39) 108 147

Cancellation of Prior Year Encumbrances 35 35

Fund Balance - January 1 903 903

Fund Balance - December 31 $ 864 $ 1,046 $ 182

153 City of Cincinnati, Ohio Schedule of Revenue, Expenditures and Changes in Fund Balance Budget(Non-GAAP Budgetary Basis) and Actual For the year ended December 31, 2009 (Amounts in Thousands)

Variance with Budget - Positive Budget Actual (Negative) CABLE TV FUND

REVENUES License and Permits $ 2,495 $ 2,970 $ 475 Miscellaneous 5 17 12

Total Revenues 2,500 2,987 487

EXPENDITURES Department of Regional Computer Center Personal Services 785 771 14 Non-Personal Services 748 706 42 Total Regional Computer Center 1,533 1,477 56

Office of the City Manager Personal Services 381 378 3 Non-Personal Services 303 170 133 684 548 136

Division of Economic Development Non-Personal Services 150 150 - 150 150 - Total Office of the City Manager 834 698 136

Department of Community Development and Planning Division of Housing Development Non-Personal Services 118 118 -

Total Department of Community Development and Planning 118 118 -

Department of Public Services Division of Neighborhood Operations Personal Services 34 34 - Total Department of Public Services 34 34 -

Nondepartmental Accounts Contribution to Pension System 278 262 16 Employee Insurance Benefits 217 215 2 Public Employee Assistance 1 - 1 Workers' Compensation Insurance 4 4 - General Fund Overhead 84 82 2 Total Nondepartmental Accounts 584 563 21

Total Expenditures 3,103 2,890 213

Excess (Deficiency) of Revenues over (under) Expenditures (603) 97 700

OTHER FINANCING SOURCES (USES) Transfers In 86 86 Transfers Out (200) (301) (101) Total Other Financing Sources (200) (215) (15)

Net Change in Fund Balance (803) (118) 685

Cancellation of Prior Years Encumbrances - 427 427

Fund Balance - January 1 1,776 1,776

Fund Balance - December 31 $ 973 $ 2,085 $ 1,112

154 City of Cincinnati, Ohio Schedule of Revenue, Expenditures and Changes in Fund Balance Budget(Non-GAAP Budgetary Basis) and Actual For the year ended December 31, 2009 (Amounts in Thousands) Variance with Budget - Positive Budget Actual (Negative) INCOME TAX INFRASTRUCTURE FUND REVENUES Taxes City Income Tax $ 14,323 $ 14,439 $ 116 Miscellaneous 691 1,111 420

Total Revenues 15,014 15,550 536 EXPENDITURES Regional Computer Center Non-Personal Services 753 753 - Total Regional Computer Center 753 753 -

Office of the City Manager Personal Services 96 96 - Non-Personal Services 4 4 - Total Office of the City Manager 100 100 -

Office of Budget and Evaluation Personal Services 39 39 - Non-Personal Services 15 14 1 Total Office of Budget and Evaluation 54 53 1

Department of Law Administration Personal Services 158 107 51 Non-Personal Services 7 5 2 Total Department of Law 165 112 53

Department of Human Resources Personal Services 186 186 - Total Department of Human Resources 186 186 -

Department of Finance Division of Accounts and Audits Personal Services 168 147 21 Non-Personal Services 3 1 2 Total Division of Accounts and Audits 171 148 23

Division of Purchasing Personal Services 82 82 - Non-Personal Services 3 3 - Total Division of Purchasing 85 85 -

Total Department of Finance 256 233 23 (Continued)

155 City of Cincinnati, Ohio Schedule of Revenue, Expenditures and Changes in Fund Balance Budget(Non-GAAP Budgetary Basis) and Actual For the year ended December 31, 2009 (Amounts in Thousands) Variance with Budget - Positive Budget Actual (Negative) INCOME TAX INFRASTRUCTURE FUND (Continued) Expenditures

Department of City Planning Licenses and Permits Personal Services $ 37 $ 37 $ - Total Department of City Planning 37 37 -

Department of Public Recreation Division of Maintenance Personal Services 347 347 - Total Department of Public Recreation 347 347 -

Department of Parks Division of Operations and Facility Management Personal Services 1,285 1,285 - Non-Personal Services 44 44 -

Total Division of Operations and Facility Management 1,329 1,329 - Division of Administration and Program Services Personal Services 37 37 -

Total Division of Administration and Program Services 37 37 - Total Department of Parks 1,366 1,366 - Department of Transportation and Engineering Office of the Director Personal Services 410 410 - Non-Personal Services 37 19 18 Total Office of the Director 447 429 18 Division of Transportation, Planning and Urban Design Personal Services 160 160 - Non-Personal Services 20 4 16 Total Division of Transportation, Planning and Urban Design 180 164 16 Division of Engineering Personal Services 1,541 1,541 - Non-Personal Services 690 688 2 Total Division of Engineering 2,231 2,229 2 Division of Traffic Engineering Personal Services 948 947 1 Non-Personal Services 145 74 71 Total Division of Traffic Engineering 1,093 1,021 72

Total Department of Transportation and Engineering 3,951 3,843 108 (Continued)

156 City of Cincinnati, Ohio Schedule of Revenue, Expenditures and Changes in Fund Balance Budget(Non-GAAP Budgetary Basis) and Actual For the year ended December 31, 2009 (Amounts in Thousands) Variance with Budget - Positive Budget Actual (Negative) INCOME TAX INFRASTRUCTURE FUND

(Continued) Expenditures

Department of Public Services Office of the Director Personal Services $ 181 $ 181 $ - Non-Personal Services 8 3 5 Total Office of the Director 189 184 5

Division of Traffic and Road Operations Personal Services 1,050 1,050 - Non-Personal Services 1,081 770 311 Capital Outlay 11 9 2 Total Division of Traffic and Road Operations 2,142 1,829 313

Division of City Facility Management Personal Services 1,158 1,153 5 Non-Personal Services 1,159 1,132 27 Total City Facility Management 2,317 2,285 32

Total Department of Public Services 4,648 4,298 350

Nondepartmental Accounts Contribution to Pension System 1,994 1,838 156 Employee Insurance Benefits 1,652 1,617 35 Public Employee Assistance 10 10 - State Unemployment Compensation 46 46 - Workers' Compensation Insurance 36 35 1 General Fund Overhead 671 651 20 Total Nondepartmental Accounts 4,409 4,197 212

Total Expenditures 16,272 15,525 747

Excess (Deficiency) of Revenues over (under) Expenditures (1,258) 25 1,283

Cancellation of Prior Years Encumbrances - 66 66

Fund Balance - January 1 3,102 3,102

Fund Balance - December 31 $ 1,844 $ 3,193 $ 1,349

157 City of Cincinnati, Ohio Schedule of Revenue, Expenditures and Changes in Fund Balance Budget(Non-GAAP Budgetary Basis) and Actual For the year ended December 31, 2009 (Amounts in Thousands)

Variance with Budget - Positive Budget Actual (Negative) INCOME TAX TRANSIT FUND

REVENUES Taxes City Income Tax $ 42,396 $ 43,316 $ 920 Use of Money and Property 300 207 (93) Miscellaneous - 16 16

Total Revenues 42,696 43,539 843

EXPENDITURES SORTA Operations 47,516 47,516 - Total SORTA 47,516 47,516 -

Office of the City Manager Office of Budget and Evaluation Personal Services 17 17 - Non-Personal Services 9 6 3 Total Office of the City Manager 26 23 3

Department of Parks Division of Operations and Facility Management Non-Personal Services 21 21 - Total Department of Parks 21 21 -

Department of Transportation and Engineering Division of Transportation, Planning & Urban Design Personal Services 35 5 30 Non-Personal Services 138 133 5 Total Department of Transportation and Engineering 173 138 35

Nondepartmental Accounts General Fund Overhead 500 469 31 Total Nondepartmental Accounts 500 469 31

Total Expenditures 48,236 48,167 69

Excess (Deficiency) of Revenues over (under) Expenditures (5,540) (4,628) 912

OTHER FINANCING (Uses) Transfers In - - Transfers Out (100) (100)

Total Other Financing Uses (100) (100) -

Net Change in Fund Balance (5,640) (4,728) 912

Cancellation of Prior Years Encumbrances 18 18

Fund Balance - January 1 11,013 11,013

Fund Balance - December 31 $ 5,373 $ 6,303 $ 930

158 City of Cincinnati, Ohio Schedule of Revenue, Expenditures and Changes in Fund Balance Budget(Non-GAAP Budgetary Basis) and Actual For the year ended December 31, 2009 (Amounts in Thousands)

Variance with Budget - Positive Budget Actual (Negative) MOTOR VEHICLE LICENSE FUND

REVENUES Intergovernmental Revenue $ 2,368 2,498 $ 130 Miscellaneous 75 151 76 Total Revenues 2,443 2,649 206

EXPENDITURES Department of Public Services Traffic and Road Operations Division Personal Services 1,328 1,318 10 Non-Personal Services 842 840 2 Total Department of Public Services 2,170 2,158 12

Nondepartmental Accounts Contribution to Pension System 276 273 3 Employee Insurance Benefits 263 261 2 Workers' Compensation Insurance 6 6 - General Fund Overhead 111 111 - Total Nondepartmental Accounts 656 651 5

Total Expenditures 2,826 2,809 17

Excess (Deficiency) of Revenues over (under) Expenditures (383) (160) 223

Cancellation of Prior Years Encumbrances 22 22

Fund Balance - January 1 656 656 Fund Balance - December 31 $ 273 $ 518 $ 245

159 City of Cincinnati, Ohio Schedule of Revenue, Expenditures and Changes in Fund Balance Budget(Non-GAAP Budgetary Basis) and Actual For the year ended December 31, 2009 (Amounts in Thousands)

Variance with Budget - Positive Budget Actual (Negative) SPECIAL RECREATION FUND

REVENUES Use of Money and Property $ 395 $ 395 $ - Charges for Services 3,504 3,689 185 Intergovernmental Revenue 3 - (3) Miscellaneous - 5 5 Total Revenues 3,902 4,089 187

EXPENDITURES Department of Recreation West Region Personal Services 421 420 1 Non-Personal Services 216 176 40 Total West Region 637 596 41

East Region Personal Services 733 730 3 Non-Personal Services 152 140 12 Total East Region 885 870 15

Central Region Personal Services 515 505 10 Non-Personal Services 161 118 43 Total Central Region 676 623 53

Division of Athletics Personal Services 215 199 16 Non-Personal Services 415 402 13 Total Division of Athletics 630 601 29

Division of Waterfront Personal Services 261 137 124 Non-Personal Services 606 476 130 Total Division of Waterfront 867 613 254

Division of Support Services Personal Services 60 59 1 Non-Personal Services 35 35 - Capital Outlay 11 11 - Total Division of Support Services 106 105 1

Total Department of Recreation 3,801 3,408 393 (Continued)

160 City of Cincinnati, Ohio Schedule of Revenue, Expenditures and Changes in Fund Balance Budget(Non-GAAP Budgetary Basis) and Actual For the year ended December 31, 2009 (Amounts in Thousands)

Variance with Budget - Positive Budget Actual (Negative) SPECIAL RECREATION FUND (Continued)

Nondepartmental Accounts Contribution to Pension System $ 119 $ 101 $ 18 Employee Insurance Benefits 57 48 9 Public Employee Assistance 2 - 2 Workers' Compensation Insurance 9 9 - General Fund Overhead 184 160 24 Total Nondepartmental Accounts 371 318 53

Total Expenditures 4,172 3,726 446

Excess (Deficiency) of Revenues over (under) Expenditures (270) 363 633

OTHER FINANCING (Uses) Transfers Out

Total Other Financing Uses - -

Net Change in Fund Balance (270) 363 633

Cancellation of Prior Year Encumbrances - 63 63

Fund Balance - January 1 1,537 1,537 Fund Balance - December 31 $ 1,267 $ 1,963 $ 696

161 Schedule of Revenue, Expenditures and Changes in Fund Balance Budget(Non-GAAP Budgetary Basis) and Actual For the year ended December 31, 2009 (Amounts in Thousands)

Variance with Budget - Positive Budget Actual (Negative) RECREATION GRANTS

REVENUES Use of Money and Property $ 104 $ 104 $ - Federal Grants 15 15 - State Grants and Subsidies 532 532 - Charges for Current Services 15 15 - Miscellaneous Revenue - - -

Total Revenues 666 666 -

EXPENDITURES Department of Recreation Region 1 Personal Services 11 11 - Non-Personal Services 19 19 -

Total Region 1 30 30 -

Region 2 Personal Services - - - Non-Personal Services 6 6 -

Total Region 2 6 6 -

Region 3 Personal Services 176 176 - Non-Personal Services 163 163 -

Total Region 3 339 339 -

Division of Athletics Personal Services 46 46 - Non-Personal Services 40 40 -

Total Division of Athletics 86 86 -

Division of Waterfront Non-Personal Services 6 6 -

Total Division of Waterfront 6 6 -

Division of Support Services Personal Services 7 7 - Non-Personal Services 144 144 -

Total Division of Support Services 151 151 -

Total Department of Recreation 618 618 -

Total Expenditures 618 618 -

Excess (Deficiency) of Revenues over (under) Expenditures 48 48 -

OTHER FINANCING SOURCES: Transfer In - -

Fund Balance - January 1 2,756 2,756

Adjustment for Prior Year Encumbrances 76 76

Fund Balance - December 31 $ 2,880 $ 2,880 $ -

162 City of Cincinnati, Ohio Schedule of Revenue, Expenditures and Changes in Fund Balance Budget(Non-GAAP Budgetary Basis) and Actual For the year ended December 31, 2009 (Amounts in Thousands)

Variance with Budget - Positive Budget Actual (Negative) PARKS

REVENUES Use of Money and Property $ 455 $ 455 $ - Charges for Current Services 667 667 - State Grants and Subsidies 23 23 Miscellaneous 71 71 -

Total Revenues 1,216 1,216 -

EXPENDITURES Department of Parks Office of the Director Non-Personal Services 36 36 -

Total Office of the Director 36 36 -

Division of Operations and Facility Management Personal Services 126 126 - Non-Personal Services 175 175 -

Total Division of Operations and Facility Management 301 301 -

Division of Administration and Program Services Personal Services 441 441 - Non-Personal Services 339 339 -

Total Division of Administration and Program Services 780 780 -

Total Department of Parks 1,117 1,117 -

Total Expenditures 1,117 1,117 -

Excess (Deficiency) of Revenues over (under) Expenditures 99 99 -

Fund Balance - January 1 1,781 1,781

Adjustment for Prior Year Encumbrances 67 67

Fund Balance - December 31 $ 1,947 $ 1,947 $ -

163 City of Cincinnati, Ohio Schedule of Revenue, Expenditures and Changes in Fund Balance Budget(Non-GAAP Budgetary Basis) and Actual For the year ended December 31, 2009 (Amounts in Thousands)

Variance with Budget - Positive Budget Actual (Negative) SAFETY

REVENUES Licenses and Permits $ 277 $ 277 $ - Use of Money and Property 18 18 - Intergovernmental Revenue 3,165 3,165 - Federal Grants 3,124 3,124 - State Grants and Subsidies 130 130 - Charges for Current Services - - - Miscellaneous 7 7 -

Total Revenues 6,721 6,721 -

EXPENDITURES Department of Regional Computer Center Personal Services 1,209 1,209 - Non-Personal Services 3,247 3,247 - Capital Outlay 15 15 -

Total Department of Regional Computer Center 4,471 4,471 -

Department of Police Personal Services 3,412 3,412 - Non-Personal Services 6,090 6,090 - Capital Outlay 1,299 1,299 - Debt Services 270 270 -

Total Department of Police 11,071 11,071 -

Department of Fire Personal Services - - - Non-Personal Services 567 567 - Capital Outlay 120 120 -

Total Department of Fire 687 687 -

Total Expenditures 16,229 16,229 -

Excess (Deficiency) of Revenues over (under) Expenditures (9,508) (9,508) -

Fund Balance - January 1 8,568 8,568

Adjustment for Prior Years Encumbrances 1,456 1,456

Fund Balance - December 31 $ 516 $ 516 $ -

164 City of Cincinnati, Ohio Schedule of Revenue, Expenditures and Changes in Fund Balance Budget(Non-GAAP Budgetary Basis) and Actual For the year ended December 31, 2009 (Amounts in Thousands)

Variance with Budget - Positive Budget Actual (Negative) HEALTH GRANTS

REVENUES Licenses and Permits $ 1,085 $ 1,085 $ - Use of Money and Property 408 408 - Intergovernmental Revenue 2,786 2,786 - Federal Grants 2,145 2,145 - State Grants and Subsidies 7,890 7,890 - Charges for Current Services 4,937 4,937 - Special Assessments 3 3 - Miscellaneous 39 39 -

Total Revenues 19,293 19,293 -

EXPENDITURES Department of Public Health Office of the Commissioner Personal Services 144 144 - Non-Personal Services 1,270 1,270 -

Total Office of the Commissioner 1,414 1,414 -

Division of Community Health Personal Services 1,540 1,540 - Non-Personal Services 2,337 2,337 -

Total Division of Community Health 3,877 3,877 -

Division of Primary Care - Special Programs Personal Services 2,536 2,536 - Non-Personal Services 1,575 1,575 -

Total Division of Primary Care - Special Programs 4,111 4,111 -

Division of Primary Care - Health Centers Personal Services 1,814 1,814 - Non-Personal Services 3,075 3,075 -

Total Division of Primary Care - Health Centers 4,889 4,889 -

Division of School and Adolescent Health Personal Services 869 869 - Non-Personal Services 347 347 -

Total Division of School and Adolescent Health 1,216 1,216 -

Total Department of Health 15,507 15,507 -

Nondepartmental Accounts Contribution to Pension System 999 999 - Employee Hospital Care 788 788 - Dental and Vision Care 93 93 - Medicare Tax 76 76 - Public Employee Assistance 5 5 - Workers' Compensation Insurance 24 24 - General Fund Overhead Charge 137 137 - Total Nondepartmental Accounts 2,122 2,122 -

Total Expenditures 17,629 17,629 -

Excess (Deficiency) of Revenues over (under) Expenditures 1,664 1,664 -

Transfers 3 3

Cancellation of Prior Years Encumbrances - -

Fund Balance - January 1 (502) (502)

Adjustment for Prior Year Encumbrances 1,717 1,717

Fund Balance - December 31 $ 2,882 $ 2,882 $ -

165 City of Cincinnati, Ohio Schedule of Revenue, Expenditures and Changes in Fund Balance Budget(Non-GAAP Budgetary Basis) and Actual For the year ended December 31, 2009 (Amounts in Thousands)

Variance with Budget - Positive Budget Actual (Negative) CINCINNATI BLUE ASH AIRPORT

REVENUES Use of Money and Property $ 45 $ 45 $ -

Total Revenues 45 45 -

EXPENDITURES Department of Transportation and Engineering Division of Aviation Non-Personal Services 301 301 - Capital Outlay - - -

Total Division of Aviation 301 301 -

Total Department of Transportation and Engineering 301 301 -

Total Expenditures 301 301 -

Excess (Deficiency) of Revenues over (under) Expenditures (256) (256) -

Fund Balance - January 1 234 234

Adjustment for Prior Year Encumbrances 45 45

Fund Balance - December 31 $ 23 $ 23 $ -

166 City of Cincinnati, Ohio Schedule of Revenue, Expenditures and Changes in Fund Balance Budget(Non-GAAP Budgetary Basis) and Actual For the year ended December 31, 2009 (Amounts in Thousands)

Variance with Budget - Positive Budget Actual (Negative) COMMUNITY DEVELOPMENT

REVENUES Use of Money and Property $ 2,497 $ 2,497 $ - Federal Grants 15,323 15,323 - Charges for Current Services 57 57 - Miscellaneous 249 249 - Total Revenues 18,126 18,126 -

EXPENDITURES Department of the City Manager Office of the City Manager Personal Services 28 28 - Non-Personal Services 24 24 - Total Office of the City Manager 52 52 -

Office of Budget and Evaluation Personal Services 140 140 - Non-Personal Services 25 25 - Total Office of Budget and Evaluation 165 165 - Total Department of the City Manager 217 217 -

Department of Law Division of Administration Personal Services 183 183 - Non-Personal Services 38 38 - Capital Outlay 165 165 - Total Department of Law 386 386 - Department of Finance Division of Accounts and Audits Personal Services 69 69 - Non-Personal Services 1 1 - Total Division of Accounts and Audits 70 70 -

Division of Treasury Personal Services 70 70 - Total Division of Treasury 70 70 -

Division of Income Tax Capital Outlay 2 2 - Total Division of Income Tax 2 2 -

Division of Internal Audit Non-Personal Services $ 19 $ 19 $ - Total Division of Internal Audit 19 19 -

Total Department of Finance 161 161 - (Continued)

167 City of Cincinnati, Ohio Schedule of Revenue, Expenditures and Changes in Fund Balance Budget(Non-GAAP Budgetary Basis) and Actual For the year ended December 31, 2009 (Amounts in Thousands)

Variance with Budget - Positive Budget Actual (Negative) COMMUNITY DEVELOPMENT

(Continued) EXPENDITURES Department of Community Development Office of the Director Personal Services $ 345 $ 345 $ - Non-Personal Services 159 159 - Capital Outlay 2,001 2,001 - Total Office of the Director 2,505 2,505 -

Division of Housing Development Personal Services 129 129 - Non-Personal Services 56 56 - Capital Outlay 9,192 9,192 - Total Division of Housing Development 9,377 9,377 -

Division of Human Services Capital Outlay (124) (124) - Total Division of Human Services (124) (124) -

Division of Community Development Personal Services 21 21 - Non-Personal Services 9 9 - Capital Outlay 1,349 1,349 - Total Division of Community Development 1,379 1,379 -

Division of New Construction and Existing Building Standards Capital Outlay 1,617 1,617 - Total Division of New Construction and Existing Building Standards 1,617 1,617 -

Total Department of Community Development and Planning 14,754 14,754 -

Department of City Planning Personal Services 399 399 - Non-Personal Services 10 10 - Total Department of City Planning 409 409 -

Department of Parks Division of Administration and Program Services Capital Outlay 100 100 - Total Division of Administration and Program Services 100 100 -

Total Department of Parks 100 100 -

(Continued)

168 City of Cincinnati, Ohio Schedule of Revenue, Expenditures and Changes in Fund Balance Budget(Non-GAAP Budgetary Basis) and Actual For the year ended December 31, 2009 (Amounts in Thousands)

Variance with Budget - Positive Budget Actual (Negative) COMMUNITY DEVELOPMENT

(Continued) EXPENDITURES Department of Public Services

Division of City Facility Management Capital Outlay 585 585 - Total Division of City Facility Management 585 585 - Total Department of Public Services 585 585 -

Department of Health Division of Community Health Capital Outlay 672 672 - Division of Community Health 672 672 - Division of Primary Health Care - Centers Capital Outlay 26 26 - Division of Primary Health Care - Centers 26 26 -

Total Department of Health 698 698 -

Nondepartmental Accounts Contribution to Pension System 336 336 - Employee Hospital Care 231 231 - Public Employee Assistance 2 2 - Workers' Compensation Insurance 6 6 - Audit and Examiner's Fees 6 6 - Indirect Costs 464 464 - Special Investigations and Studies 492 492 - Total Nondepartmental Accounts 1,537 1,537 - Total Expenditures 18,847 18,847 -

Excess (Deficiency) of Revenues over (under) Expenditures (721) (721) -

Fund Balance - January 1 (21,739) (21,739) Adjustment for Prior Years Encumbrances 13,259 13,259 Fund Balance - December 31 $ (9,201) $ (9,201) $ -

169 City of Cincinnati, Ohio Schedule of Revenue, Expenditures and Changes in Fund Balance Budget(Non-GAAP Budgetary Basis) and Actual For the year ended December 31, 2009 (Amounts in Thousands)

Variance with Budget - Positive Budget Actual (Negative) DEPARTMENT OF LABOR GRANTS

REVENUES Federal Grants $ 116 $ 116 $ -

Total Revenues 116 116 -

EXPENDITURES Department of Community Development Division of Housing Development Non-Personal Services 116 116 -

Total Division of Housing Development 116 116 -

Division of Community Development Non-Personal Services 15 15 -

Total Division of Housing Development 15 15 -

Total Department of Community Development and Planning 131 131 -

Total Expenditures 131 131 -

Excess (Deficiency) of Revenues over (under) Expenditures (15) (15) -

Fund Balance - January 1 178 178

Adjustment for Prior Year Encumbrances 201 201

Fund Balance - December 31 $ 364 $ 364 $ -

170 City of Cincinnati, Ohio Schedule of Revenue, Expenditures and Changes in Fund Balance Budget(Non-GAAP Budgetary Basis) and Actual For the year ended December 31, 2009 (Amounts in Thousands)

Variance with Budget - Positive Budget Actual (Negative) OTHER GRANTS AND SPECIAL REVENUES

REVENUES Taxes $ 1,883 $ 1,883 $ - Use of Money and Property 1,801 1,801 - Special Assessments 4,197 4,197 - Federal Grants 13,310 13,310 - State Grants and Subsidies 1,595 1,595 - Charges for Current Services 1,712 1,712 - License and Permits 4 4 - Intergovernmental Revenue 7 7 - Miscellaneous 693 693 -

Total Revenues 25,202 25,202 -

EXPENDITURES Department of the City Manager Office of the City Manager Non-Personal Services 75 75 - Total Office of the City Manager 75 75 -

Office of Budget and Evaluation Non-Personal Services 2,861 2,861 - Capital Outlay 29 29 - Total Office of Budget and Evaluation 2,890 2,890 -

Office of Enviromental Management Personal Services 199 199 - Non-Personal Services 84 84 - Capital Outlay 17 17 - Total Office of Environmental Management 300 300 -

Office of Economic Development Non-Personal Services 120 120 - Total Office of Environmental Management 120 120 -

Total Department of the City Manager 3,385 3,385 - Department of Finance Division of Accounts and Audits Non-Personal Services 234 234 - Total Division of Accounts and Audits 234 234 -

Division of Treasury Non-Personal Services 3,854 3,854 - Total Division of Treasury 3,854 3,854 - (Continued)

171 City of Cincinnati, Ohio Schedule of Revenue, Expenditures and Changes in Fund Balance Budget(Non-GAAP Budgetary Basis) and Actual For the year ended December 31, 2009 (Amounts in Thousands)

Variance with Budget - Positive Budget Actual (Negative) OTHER GRANTS AND SPECIAL REVENUES

(Continued) Expenditures

Division of Risk Management Personal Services $ 406 $ 406 $ - Non-Personal Services 445 445 - Total Division of Risk Management 851 851 - Total Department of Finance 4,939 4,939 -

Department of Community Development and Planning Office of the Director Non-Personal Services (1) (1) - Capital Outlay 1,519 1,519 - Total Office of the Director 1,518 1,518 -

Division of Housing Development Personal Services 28 28 - Non-Personal Services 2,556 2,556 - Capital Outlay 12,141 12,141 - Total Division of Housing Development 14,725 14,725 -

Division of Human Services Non-Personal Services (48) (48) - Total Division of Human Services (48) (48) -

Division of Community Development Non-Personal Services 1,898 1,898 - Capital Outlay (2,040) (2,040) - Total Division of Community Development (142) (142) -

Division of New Construction and Existing Building Standards Non-Personal Services 146 146 - Capital Outlay 1,552 1,552 - Total Division of Community Development 1,698 1,698 - Total Department of Community Development and Planning 17,751 17,751 -

Department of Parks Division of Operations and Facility Management Personal Services 458 458 - Non-Personal Services 1,586 1,586 - Capital Outlay 117 117 - Total Department of Parks 2,161 2,161 - (Continued)

172 City of Cincinnati, Ohio Schedule of Revenue, Expenditures and Changes in Fund Balance Budget(Non-GAAP Budgetary Basis) and Actual For the year ended December 31, 2009 (Amounts in Thousands)

Variance with Budget - Positive Budget Actual (Negative) OTHER GRANTS AND SPECIAL REVENUES

(Continued) Expenditures

Department of Police Non-Personal Services 1,338 1,338 - Capital Outlay 100 100 - Total Department of Police 1,438 1,438 -

Department of Transportation and Engineering Division of Transportation Planning Capital Outlay 300 300 - Total Division of Transportation Planning 300 300 -

Division of Engineering Capital Outlay 1,507 1,507 - Total Division of Engineering 1,507 1,507 -

Division of Traffic Engineering Personal Services 70 70 - Non-Personal Services 137 137 - Capital Outlay - - - Total Division of Traffic Engineering 207 207 -

Total Department of Transportation and Engineering 2,014 2,014 -

Department of Public Services Division of Traffic and Road Operations Personal Services 40 40 - Non-Personal Services 203 203 - Total Division of Traffic and Road Operations 243 243 -

Division of Neighborhood Operations Non-Personal Services 50 50 - Total Division of Neighborhood Operations 50 50 -

Division of City Facility Management Non-Personal Services 2,982 2,982 - Total City Facility Management 2,982 2,982 -

Total Department of Public Services 3,275 3,275 - (Continued)

173 City of Cincinnati, Ohio Schedule of Revenue, Expenditures and Changes in Fund Balance Budget(Non-GAAP Budgetary Basis) and Actual For the year ended December 31, 2009 (Amounts in Thousands)

Variance with Budget - Positive Budget Actual (Negative) OTHER GRANTS AND SPECIAL REVENUES

(Continued) Expenditures

Nondepartmental Accounts General Fund Overhead 33 33 - Total Nondepartmental Accounts 33 33 -

Total Expenditures 34,996 34,996 -

Excess (Deficiency) of Revenues over (under) Expenditures (9,794) (9,794) -

Fund Balance - January 1 (21,306) (21,306)

Adjustment for Prior Years Encumbrances 14,663 14,663

Fund Balance - December 31 $ (16,437) $ (16,437) $ -

174 City of Cincinnati, Ohio Schedule of Revenue, Expenditures and Changes in Fund Balance Budget(Non-GAAP Budgetary Basis) and Actual For the year ended December 31, 2009 (Amounts in Thousands)

Variance with Budget - Positive Budget Actual (Negative) BETTMAN NATURE CENTER

REVENUES Use of Money and Property $ (74) $ (74) $ -

Total Revenues (74) (74) -

EXPENDITURES Department of Parks Division of Operations and Facility Management Non-Personal Services 8 8 -

Total Division of Operations and Facility Management 8 8 -

Total Department of Parks 8 8 -

Total Expenditures 8 8 -

Excess (Deficiency) of Revenues over (under) Expenditures (82) (82) -

OTHER FINANCING (USES) Transfers Out (40) (40)

Total Other Financing Uses (40) (40) -

Net Change in Fund Balance (122) (122) -

Fund Balance - January 1 1,243 1,243

Fund Balance - December 31 $ 1,121 $ 1,121 $ -

175 City of Cincinnati, Ohio Schedule of Revenue, Expenditures and Changes in Fund Balance Budget(Non-GAAP Budgetary Basis) and Actual For the year ended December 31, 2009 (Amounts in Thousands)

Variance with Budget - Positive Budget Actual (Negative) GROESBECK ENDOWMENT FUND

REVENUES Use of Money and Property $ 16 $ 16 $ -

Total Revenues 16 16 -

Excess (Deficiency) of Revenues over (under) Expenditures 16 16 -

OTHER FINANCING (USES) Transfers Out (18) (18) -

Total Other Financing Uses (18) (18) -

Net Change in Fund Balance (2) (2) -

Fund Balance - January 1 60 60

Fund Balance - December 31 $ 58 $ 58 $ -

176 City of Cincinnati, Ohio Schedule of Revenue, Expenditures and Changes in Fund Balance Budget(Non-GAAP Budgetary Basis) and Actual For the year ended December 31, 2009 (Amounts in Thousands)

Variance with Budget - Positive Budget Actual (Negative) SCHMIDLAPP PARK MUSIC FUND

REVENUES Use of Money and Property $ 1 $ 1 $ -

Total Revenues 1 1 -

EXPENDITURES Department of Parks Division of Administration and Program Services Non-Personal Services 2 2 -

Total Division of Administration and Program Services 2 2 -

Total Department of Parks 2 2 -

Total Expenditures 2 2 -

Excess (Deficiency) of Revenues over (under) Expenditures (1) (1) -

Fund Balance - January 1 52 52

Fund Balance - December 31 $ 51 $ 51 $ -

177 City of Cincinnati, Ohio Schedule of Revenue, Expenditures and Changes in Fund Balance Budget(Non-GAAP Budgetary Basis) and Actual For the year ended December 31, 2009 (Amounts in Thousands)

Variance with Budget - Positive Budget Actual (Negative) JOANNA PETERS BEQUEST

REVENUES Use of Money and Property $ 3 $ 3 $ -

Total Revenues 3 3 -

Excess (Deficiency) of Revenues over (under) Expenditures 3 3 -

Fund Balance - January 1 110 110

Fund Balance - December 31 $ 113 $ 113 $ -

178 City of Cincinnati, Ohio Schedule of Revenue, Expenditures and Changes in Fund Balance Budget(Non-GAAP Budgetary Basis) and Actual For the year ended December 31, 2009 (Amounts in Thousands)

Variance with Budget - Positive Budget Actual (Negative) THE W. M. AMPT MUSIC ENDOWMENT FUND

REVENUES Use of Money and Property $ 8 $ 8 $ -

Total Revenues 8 8 -

Excess (Deficiency) of Revenues over (under) Expenditures 8 8 -

OTHER FINANCING (USES) Transfers Out (9) (9)

Total Other Financing Uses (9) (9) -

Net Change in Fund Balance (1) (1) -

Fund Balance - January 1 138 138

Fund Balance - December 31 $ 137 $ 137 $ -

179 City of Cincinnati, Ohio Schedule of Revenue, Expenditures and Changes in Fund Balance Budget(Non-GAAP Budgetary Basis) and Actual For the year ended December 31, 2009 (Amounts in Thousands)

Variance with Budget - Positive Budget Actual (Negative) CROSLEY FIELD TRUST

REVENUES Use of Money and Property $ 24 $ 24 $ -

Total Revenues 24 24 -

EXPENDITURES Department of Recreation Division of Athletics Non-Personal Services 7 7 -

Total Department of Recreation 7 7 -

Total Expenditures 7 7 -

Excess (Deficiency) of Revenues over (under) Expenditures 17 17 -

OTHER FINANCING (USES) Transfers Out (18) (18)

Total Other Financing Uses (18) (18) -

Net Change in Fund Balance (1) (1) -

Fund Balance - January 1 520 520

Fund Balance - December 31 $ 519 $ 519 $ -

180 City of Cincinnati, Ohio Schedule of Revenue, Expenditures and Changes in Fund Balance Budget(Non-GAAP Budgetary Basis) and Actual For the year ended December 31, 2009 (Amounts in Thousands)

Variance with Budget - Positive Budget Actual (Negative) KROGER TRUST

REVENUES Use of Money and Property $ 2 $ 2 $ -

Total Revenues 2 2 -

Excess (Deficiency) of Revenues over (under) Expenditures 2 2 -

Fund Balance - January 1 83 83

Fund Balance - December 31 $ 85 $ 85 $ -

181 City of Cincinnati, Ohio Schedule of Revenue, Expenditures and Changes in Fund Balance Budget(Non-GAAP Budgetary Basis) and Actual For the year ended December 31, 2009 (Amounts in Thousands)

Variance with Budget - Positive Budget Actual (Negative) YEATMAN'S COVE PARK TRUST

REVENUES Use of Money and Property $ 17 $ 17 $ -

Total Revenues 17 17 -

EXPENDITURES Department of Recreation Division of Waterfront Activities Non-Personal Services 1 1 -

Total Division of Waterfront Activities 1 1 -

Total Department of Recreation 1 1 -

Total Expenditures 1 1 -

Excess (Deficiency) of Revenues over (under) Expenditures 16 16 -

Fund Balance - January 1 586 586

Fund Balance - December 31 $ 602 $ 602 $ -

182 City of Cincinnati, Ohio Schedule of Revenue, Expenditures and Changes in Fund Balance Budget(Non-GAAP Budgetary Basis) and Actual For the year ended December 31, 2009 (Amounts in Thousands)

Variance with Budget - Positive Budget Actual (Negative) PARK BOARD FUND

REVENUES Use of Money and Property $ (426) $ (426) $ -

Total Revenues (426) (426) -

EXPENDITURES Department of Parks Division of Administration and Program Services Non-Personal Services 33 33 -

Total Division of Administration and Program Services 33 33 -

Total Department of Parks 33 33 -

Total Expenditures 33 33 -

Excess (Deficiency) of Revenues over (under) Expenditures (459) (459) -

OTHER FINANCING (USES) Transfers Out (212) (212)

Total Other Financing Uses (212) (212) -

Net Change in Fund Balance (671) (671) -

Fund Balance - January 1 5,745 5,745

Fund Balance - December 31 $ 5,074 $ 5,074 $ -

183 (This page intentionally left blank.)

184 CITY OF CINCINNATI, OHIO

NON-MAJOR ENTERPRISE FUNDS

Convention Center – Used to account for the expenses from the operation of the Duke Energy Convention Center, financed primarily through user fees.

Parking Facilities - Used to account for the revenue and expenses of the parking meters, garages, and lots of the City.

General Aviation - Used to account for the expenses of Lunken Airport, financed primarily through user fees.

Municipal Golf - Used to account for the revenue received from all golf activities and for the expenses of operating the golf courses of the City.

Stormwater Management - Used to account for the operation, maintenance and improvement of a stormwater management system. Financing is provided by the users of the system in proportion to their use of the system.

185 (This page intentionally left blank.)

186 CITY OF CINCINNATI, OHIO Combining Statement of Net Assets Nonmajor Enterprise Funds December 31, 2009 (Amounts in Thousands)

Business Type Activities - Enterprise Funds Total Nonmajor Convention Parking General Municipal Stormwater Enterprise Center Facilities Aviation Golf Management Funds Assets Current Assets: Cash and Equivalents $ $ 33 $ $ 13 $ $ 46 Equity in City Treasury Cash 737 4,911 566 985 1,873 9,072 Receivables: Taxes Receivable 141 141 Accounts, Net 299 11 68 1 1,810 2,189 Accrued Interest 226 45 54 118 443 Due from Other Funds 38 143 30 52 147 410 Due from Other Governments 594 594 Prepaid Items 62 18 19 99 Advances to Other Funds 277 5,096 1,327 351 2,159 9,210 Restricted Assets: Equity in City Treasury Cash 154 154 Total Current Assets 2,148 10,592 2,055 1,456 6,107 22,358 Noncurrent Assets: Equity in City Treasury Cash 1,174 7,882 908 1,580 3,005 14,549 Restricted Equity in City Treasury 246 246 Land 11,555 7,296 13,229 1,324 4,186 37,590 Buildings, net of Accumulated Depreciation 7,875 21,825 897 511 31,108 Improvements, net of Accumulated Depreciation 107,890 6,689 8,597 4,491 34,276 161,943 Machinery and Equipment, net of Accumulated Depreciation 685 595 102 625 129 2,136 Property Acquired Under Capital Lease Net of Accumulated Amortization 136 136 Construction in Progress 1,103 2,322 994 4,638 6,488 15,545 Total Noncurrent Assets 130,282 46,855 24,727 13,305 48,084 263,253 Total Assets $ 132,430 $ 57,447 $ 26,782 $ 14,761 $ 54,191 $ 285,611

Liabilities Current Liabilities: Accounts Payable $ 77 $ 794 $ 44 $ 121 $ 773 $ 1,809 Due to Other Funds 4,305 14 7 1,129 5,455 Accrued Payroll 116 50 9 70 245 Accrued Liabilities 264 736 22 1 1 1,024 Accrued Interest 2 2 9 13 Obligations Under Capital Lease 63 63 Deposits Payable 4 4 Unearned Revenue 415 6,638 7,053 Compensated Absences Payable 242 82 13 117 454 Unpaid Claims Liability 1 1 General Obligation Bonds Payable 33 282 315 Total Current Liabilities 756 12,833 251 505 2,091 16,436

Noncurrent liabilities: Urban Redevelopment Loans 4,698 4,698 Compensated Absences Payable 331 176 21 181 709 General Obligation Bonds Payable 520 2,520 3,040 Obligations Under Capital Lease 11 11 Net Pension Obligation 145 717 234 17 382 1,495 Net Other Post Employment Benefit Obligation 46 412 142 9 239 848 Total Noncurrent Liabilities 191 6,158 1,072 2,578 802 10,801

Total Liabilities 947 18,991 1,323 3,083 2,893 27,237

NET ASSETS Invested in Capital Assets, Net of Related Debt 129,108 34,029 23,266 9,240 45,079 240,722 Restricted 400 400 Unrestricted 2,375 4,027 2,193 2,438 6,219 17,252 Total Net Assets $ 131,483 $ 38,456 $ 25,459 $ 11,678 $ 51,298 $ 258,374

187 CITY OF CINCINNATI, OHIO Combining Statement of Revenue, Expenses and Changes in Net Assets Nonmajor Enterprise Funds For the year ended December 31, 2009 (Amounts in Thousands)

Business Type Activities - Enterprise Funds Total Nonmajor Convention Parking General Municipal Stormwater Enterprise Center Facilities Aviation Golf Management Funds OPERATING REVENUES Charges for Services $ 5,236 $ 8,860 $ 1,932 $ 6,458 $ 8,756 $ 31,242 Miscellaneous Income 2 335 3 90 430

Total Operating Revenues 5,238 9,195 1,935 6,548 8,756 31,672

OPERATING EXPENSES Personal Services 2,997 1,151 250 2,293 6,691 Contractual Services 7,114 2,083 110 4,658 2,276 16,241 Maintenance and Repairs 360 118 - 3,219 3,697 Materials and Supplies - 127 109 131 69 436 Utilities 429 206 436 64 1,135 Insurance 47 10 6 - - 63 Taxes 82 484 42 71 - 679 Rent - 110 8 - 240 358 Other Expense 101 8 - 5 114 Depreciation and Amortization 7,362 2,075 746 468 1,830 12,481

Total Operating Expenses 14,605 8,776 2,504 6,014 9,996 41,895

Operating Income (Loss) (9,367) 419 (569) 534 (1,240) (10,223)

NONOPERATING REVENUES (EXPENSES) Interest Revenue 360 71 74 201 706 Occupancy Tax 1,187 1,187 Interest Expense (51) (25) (127) (2) (205) Loss on Disposal of Assets (4) - - (4)

Total Non-Operating Revenues (Expenses) 1,187 305 46 (53) 199 1,684

Income (Loss) before Contributions and Transfers (8,180) 724 (523) 481 (1,041) (8,539)

Transfers In 1,000 6 1 30 1,037 Transfers (Out) (1,239) (1,239) Capital Contributions 8 259 267

Change in Net Assets (7,180) (501) (264) 482 (1,011) (8,474)

Net Assets, January 1 138,663 38,957 25,723 11,196 52,309 266,848

Net Assets, December 31 $ 131,483 $ 38,456 $ 25,459 $ 11,678 $ 51,298 $ 258,374

188 CITY OF CINCINNATI, OHIO Combining Statement of Cash Flows Nonmajor Enterprise Funds For the year ended December 31, 2009 (Amounts in Thousands)

Business Type Activities - Enterprise Funds Total Nonmajor Convention Parking General Municipal Stormwater Enterprise Center Facilities Aviation Golf Management Funds Cash Flows from Operating Activities: Receipts from Customers $ 5,511 $ 8,913 $ 1,906 $ 6,551 $ 8,775 $ 31,656 Receipts from Other Funds Payments to Suppliers (7,098) (2,686) (593) (5,252) (3,166) (18,795) Payments to Other Funds (49) (534) (2,345) (2,928) Payments to Employees (2,644) (978) (235) (2,081) (5,938) Payments for Property Taxes (15) (745) (41) (801)

Net Cash Provided (Used) by Operating Activities (1,651) 2,304 294 1,064 1,183 3,194

Cash Flows from Noncapital Financing Activities: Repayment of Advances Made To Other Funds 317 317 Advances to Other Funds (3,465) (696) 980 (977) (4,158) Amounts Due From Other Funds for Notes 141 9 (8) 31 173 Amounts in Accounts Payable from Notes 623 156 779 Amounts Due to Other Funds for Notes 4,256 1,085 5,341 Occupancy Tax 1,130 1,130 Transfers to Other Funds (1,239) (1,239) Transfers from Other Funds 1,000 6 1 30 1,037

Net Cash Provided (Used) by Noncapital Financing $ 2,447 $ 322 $ (687) $ 973 $ 325 $ 3,380

Cash Flows from Capital and Related Financing Activities: Capital Contributed by Other Sources 259 259 Acquisition of Property, Plant and Equipment (1) (51) (52) Interest Paid on Bonds and Notes (49) (25) (128) (2) (204) Principal Paid on Bonds and Notes (32) (283) (315) Payments on Long Term Capital Leases Obligations (56) (56) Additions to Construction in Progress (546) (2,024) (82) (980) (1,876) (5,508) Net Cash Provided (Used) by Capital and Related Financing Activities (546) (2,073) 120 (1,448) (1,929) (5,876)

Cash Flow from Investing Activities: Interest and Dividends on Investments 312 5760 50 169 591 Net Cash Provided by Investing Activities 312 60 50 169 591 Net Increase (decrease) in Cash and Cash Equivalents 250 865 (213) 639 5,130(252) 1,289 Cash and Cash Equivalents at Beginning of Year 1,661 12,361 1,687 1,939 5,130 22,778

Cash and Cash Equivalents at End of Year $ 1,911 $ 13,226 $ 1,474 $ 2,578 $ 4,878 $ 24,067 (Continued)

189 CITY OF CINCINNATI, OHIO Combining Statement of Cash Flows Nonmajor Enterprise Funds For the year ended December 31, 2009 (Amounts in Thousands)

Business Type Activities - Enterprise Funds Total Nonmajor Convention Parking General Municipal Stormwater Enterprise Center Facilities Aviation Golf Management Funds

(Continued) Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Operating Income (Loss) $ (9,367) $ 419 $ (569) $ 534 $ (1,240) $ (10,223)

Depreciation and Amortization 7,362 2,075 746 468 1,830 12,481

Changes in Assets and Liabilities: (Increase) Decrease in: Receivables 100 44 (26) 3 12 133 Due from Other Funds 7 7 Due from Other Governments 220 220 Prepaid Items (52) (16) 4 (64) Increase (Decrease) in: Accounts Payable (72) 21 (28) 45 402 368 Due to Other Funds (4) 1 (1) (41) (45) Accrued Payroll 11 7 (3) 15 Accrued Liabilities 206 (261) 1 (54) Deposits Payable (3) (3) Unearned Revenue (47) (326) (373) Compensated Absences Payable 36 52 6 (22) 72 Unpaid Claims Payable (1) (1) (2) Net Pension Obligation 160 59 5 122 346 Net Other Post Employment Benefit Obligation 146 54 4 112 316 Net Cash Provided (Used) by Operating Activities $ (1,651) $ 2,304 $ 294 $ 1,064 $ 1,183 $ 3,194

190 CITY OF CINCINNATI, OHIO INTERNAL SERVICE FUNDS

Purchasing, Reproduction, and Printing - Used to account for revenue from Citydepartments and for the expenses of operations and maintenance of the Division of Reproduction and Printing. Also, used to account for the revenue and expenses related to the distribution and sale of materials and supplies.

Fleet Services - Used to account for revenue from City departments for auto repairs and maintenance and to account for the expenses necessary to provide this service.

Property Management - Used to account for proceeds of City leases and land sales and to account for costs of administering the fixed assets of the City.

Mechanized Street Sweeping – Used to account for revenues from various sources and to track revenues and expenditures for materials, salaries, service contracts and other costs associated with the mechanized street sweeping contract awarded to City employees as a result of the managed competition process for this service.

Self Insurance-Medical - Used to account for monies appropriated from the General or other funds or received from contract agencies, employees, members of council and others, including interest earned, and to make expenditures for employee medical costs.

Self Insurance-Workers' Compensation - Used to receive, from all City funds, workers' compensation premium charges, and to pay workers' compensation premium payments, claim costs and reserve settlements.

Regional Computer Center - Used to account for revenue and expenses related to the delivery of data processing services to the City, Hamilton County, and others.

191 (This page intentionally left blank.)

192 CITY OF CINCINNATI, OHIO Combining Statement of Net Assets Internal Service Funds December 31, 2009 (Amounts in Thousands)

Total Purchasing Self Self Insurance Regional Internal Reproduction Fleet Property Insurance Workers' Computer Service and Printing Services Management Medical Compensation Center Funds

ASSETS CurrentCash Assets: Equity in City Treasury Cash $ 132 $ 141 $ 223 $ 3,350 $ 9,721 $ 982 $ 14,549 Receivables: Accounts, Net 40 179 219 193 Accrued Interest 111 452 23 586 Due from Other Funds 214 1,236 13 4,122 510 1,740 7,835 Due from Other Governments 279 279 Prepaid Items 5 10 1,207 111 1,333 Inventory 59 291 350 Advances to Other Funds 1,214 1,214 Total Current Assets 445 1,852 246 8,790 10,683 4,349 26,365

Noncurrent Assets: Equity in City Treasury Cash 211 225 357 5,376 15,601 1,576 23,346 Land 283 283 Improvements, net of Accumulated Depreciation 2,812 3 4,227 7,042 Machinery and Equipment, net of Accumulated Depreciation 570 127 8 8 24,554 25,267 Property Acquired Under Capital Lease, net of Accumulated Amortization 416 416 Total Noncurrent Assets 1,197 3,447 368 5,384 15,601 30,357 56,354

Total Assets 1,642 5,299 614 14,174 26,284 34,706 82,719 (Continued) CITY OF CINCINNATI, OHIO Combining Statement of Net Assets Internal Service Funds December 31, 2009 (Amounts in Thousands)

Total Purchasing Self Self Insurance Regional Internal Reproduction Fleet Property Insurance Workers' Computer Service and Printing Services Management Medical Compensation Center Funds

(Continued) LIABILITIES Current Liabilities: Accounts Payable $ 109 $ 593 $ 1 $ 5,002 $ 496 $ 191 $ 6,392 Due to Other Funds 6 92 3 350 54 505 Accrued Payroll 26 202 18 250 496 Accrued Liabilities 1 3 2,473 466 2,943 Obligations under Capital Leases 79 79 Deposits Payable 107 107 Unearned Revenue 167 167 194 Compensated Absences Payable 47 307 36 621 1,011 Unpaid Claims Payable 10,530 3,490 14,020 Total Current Liabilities 268 1,197 165 15,882 6,459 1,749 25,720

Noncurrent Liabilities: Estimated Liability for Compensated Absences 58 284 61 461 864 Estimated Liability for Unpaid Claims 7,076 7,076 Advances from Other Funds 50 177 227 Advances from Other Governments 20 1 21 Obligations under Capital Leases 337 337 Net Pension Obligation 132 1,361 93 2,590 4,176 Net Other Post Employment Benefit Obligation 53 567 40 1,089 1,749 Total Noncurrent Liabilities 580 2,282 371 7,076 4,141 14,450

Total Liabilities 848 3,479 536 15,882 13,535 5,890 40,170

NET ASSETS Investment in Capital Assets, Net of Related Debt 570 3,222 11 8 28,781 32,592 Unrestricted 224 (1,402) 67 (1,716) 12,749 35 9,957

Total Net Assets $ 794 $ 1,820 $ 78 $ (1,708) $ 12,749 $ 28,816 $ 42,549 CITY OF CINCINNATI, OHIO Combining Statement of Revenue, Expenses and Changes in Fund Net Assets Internal Service Funds For the year ended December 31, 2009 (Amounts in Thousands)

Total Purchasing Self Self Insurance Regional Internal Reproduction Fleet Property Insurance Workers' Computer Service and Printing Services Management Medical Compensation Center Funds OPERATING REVENUES Charges for Services $ 2,852 $ 14,752 $ $ 101,814 $ $ 13,167 $ 132,585 Miscellaneous 1,975 1,975

Total Operating Revenues 2,852 14,752 1,975 101,814 13,167 134,560

OPERATING EXPENSES Personal Services 755 4,913 406 7,411 13,485 Contractual Services 679 325 45 988 399 1,771 4,207 Maintenance and Repairs 246 892 1 286 1,425 Materials and Supplies 1,284 8,400 1 9 771 10,465

195 Utilities 3 248 3 436 690 Insurance 8 102,467 4,095 39 106,609 Rent 2 17 64 1,228 1,311 Depreciation and Amortization 28 240 3 4,232 4,503 Other Expense 4 1 8 3 16 Total Operating Expenses 2,997 15,047 523 103,464 4,503 16,177 142,711

Operating Income (Loss) (145) (295) 1,452 (1,650) (4,503) (3,010) (8,151)

NONOPERATING REVENUES (EXPENSES) Interest Expense (1) (1) Interest Revenue 235 724 42 1,001 (Loss) on Disposal of Assets (13) (13)

Total Non-Operating Revenue (Expenses) (1) (13) 235 724 42 987

Income (Loss) before Contributions and Transfers (146) (308) 1,452 (1,415) (3,779) (2,968) (7,164) Transfers In 668 1,255 1,923 Transfers (Out) (1,491) (110) (1,601) Capital Contribution 31 8 39 Change in Net Assets (146) 391 (39) (1,407) (3,779) (1,823) (6,803) Net Assets, January 1 940 1,429 117 (301) 16,528 30,639 49,352 Net Assets, December 31 $ 794 $ 1,820 $ 78 $ (1,708) $ 12,749 $ 28,816 $ 42,549 CITY OF CINCINNATI, OHIO Combining Statement of Cash Flows Internal Service Funds For the year ended December 31, 2009 (Amounts in Thousands) Total Purchasing Self Self Insurance Regional Internal Reproduction Fleet Property Insurance Workers' Computer Service and Printing Services Management Medical Compensation Center Funds Cash Flows from Operating Activities: Receipts from Customers $ 114 $ 237 $ 2,010 $ 8,919 $ $ 2,532 $ 13,812 Receipts from Other Funds 2,516 14,217 38,889 10,474 66,096 Receipts from Retirement System 55,600 55,600 Payment to Suppliers (2,167) (8,629) (101) (105,879) (5,400) (4,801) (126,977) Payments to Other Funds (15) (1,433) (377) (1,825) Payments to Employees (685) (4,302) (348) (6,768) (12,103) Net Cash Provided (Used) by Operating Activities (237) 90 1,561 (2,471) (5,400) 1,060 (5,397) Cash Flows from Noncapital Financing Activities: Repayment of Advances Made to Other Funds 342 342 Repayment of Advances Received From Other Funds 668 668 Due from Other Funds for Note Payable 16 (1) 75 179 (12) 257 196 Repayment of Amount Due to Other Fund (668) (668) Transfers to Other Funds (1,496) (110) (1,606) Transfers from Other Funds 1,255 1,255 Net Cash Provided (Used) by Noncapital Financing Activities 16 (1) (1,496) 75 179 1,475 248 Cash Flows from Capital and Related Financing Activities: Acquisition of Property, Plant and Equipment (450) (330) (780) Capital Items Expensed 43 43 Additions to Construction In Progress (1,447) (1,447) Interest Paid on Debt (1) (1) Payment on Long Term Capital Lease Obligations (8) (8) Net Cash (Used) by Capital and Related Financing Activities (459) (1,734) (2,193) Cash Flows from Investing Activities: Interest on Investments 196 680 34 910 Net Cash Provided by Investing Activities 196 680 34 910 Net Increase (Decrease) in Cash and Cash Equivalents (680) 89 65 (2,200) (4,541) 835 (6,432) Cash and Cash Equivalents at Beginning of Year 1,023 277 515 10,926 29,863 1,723 44,327 Cash and Cash Equivalents at End of Year $ 343 $ 366 $ 580 $ 8,726 $ 25,322 $ 2,558 $ 37,895 CITY OF CINCINNATI, OHIO Combining Statement of Cash Flows Internal Service Funds For the year ended December 31, 2009 (Amounts in Thousands)

Total Purchasing Self Self Insurance Regional Internal Reproduction Fleet Property Insurance Workers' Computer Service and Printing Services Management Medical Compensation Center Funds

Reconciliation of Operating Income(Loss) to Net Cash Provided (Used) by Operating Activities: Operating Income (Loss) $ (145) $ (295) $ 1,452 $ (1,650) $ (4,503) $ (3,010) $ (8,151) Depreciation and Amortization 28 240 3 4,232 4,503

Changes in Assets and Liabilities: (Increase) Decrease in: Receivables (15) 3 750 6 744 Due from Other Funds (207) (301) (1) (3,126) 2 (3,633)

197 Due from Other Governments (1,016) (1,016) Inventory 11 1 1,178 1,190 Prepaid Items 8 (81) (73) Increase (Decrease) in: Accounts Payable 22 (198) 1 877 (133) (564) 5 Deposits Payable 48 48 Due to Other Funds (1) 33 350 (40) 342 Accrued Payroll 1 32 3 (71) (35) Accrued Liabilities 1 1,088 43 1,132 Unearned Revenue (323) (323) Estimated Liability for Compensated Absences 12 60 9 (79) 2 Estimated Liability for Unpaid Claims Payable 320 (1,860) (1,540) Net Pension Obligation 45 406 36 624 1,111 Net Other Post Employment Benefit Obligation 12 108 10 167 297 Net Cash Provided (Used) by Operating Activities $ (237) $ 90 $ 1,561 $ (2,471) $ (5,400) $ 1,060 $ (5,397)

Schedule of Noncash Investing , Capital and Financing Activities: Property Plant and Equipment Transferred to Other Funds $ $ (364) $ $ $ $ $ (364) Acquired by Capital Lease 409 409 Contributed by Other Funds 118 118 Total Noncash Investing, Capital and Financing Activities $ 409 $ (246) $ $ $ $ $ 163 (This page intentionally left blank.)

198

CITY OF CINCINNATI, OHIO

FIDUCIARY FUNDS ___

TRUST AND AGENCY FUNDS

Pension Trust Fund Pension Trust - Used to account for the receipts and expenditures of the City’s Retirement System.

Agency Funds Towing Charges - Used to account for monies received as charges for towing and storage of impounded vehicles.

Convention Facility Authority – Used to account for monies collected by the City of Cincinnati from Transient Occupancy Tax Revenues.

Admission Tax Bond - Used to account for deposits related to entertainment facilities in the City.

Engineering Deposits - Used to account for Transportation & Engineering monies reserved for specific purposes.

Metropolitan Sewer District - Used to account for the monies of the Metropolitan Sewer District.

199

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200 CITY OF CINCINNATI, OHIO Statement of Plan Net Assets Pension Trust December 31, 2009 (Amounts in Thousands)

Pension Healthcare Total

ASSETS Cash and Equivalents $ 43,056 $ 19,537 $ 62,593

Investments, at fair value: Government Bonds 23,896 10,842 34,738 Government Agencies 9,198 4,173 13,371 Government Mortgage Backed Securities 48,256 21,896 70,152 Corporate Bonds 145,013 65,799 210,812 State and Local Obligations 4,302 1,952 6,254 Equities 725,605 329,238 1,054,843 Venture Capital 287,506 130,454 417,960 Real Estate 71,709 32,537 104,246 Other Bonds 13,919 6,315 20,234 Other Assets 8,647 3,924 12,571 Total Investments, at fair value 1,338,051 607,130 1,945,181

Collateral on Loaned Securities 108,370 49,172 157,542 Receivables: Accounts Receivable - Other 199 91 290 Accounts Receivable for Securities Sold 6,152 2,792 8,944 Accrued Interest and Dividends 3,761 1,706 5,467 Due from Other Funds 840 381 1,221 Due from Other Governments 347 158 505 Loans Receivable 8,539 3,875 12,414 Machinery and Equipment 1,438 653 2,091 Accumulated Depreciation (1,016) (461) (1,477) Total Assets 1,509,737 685,034 2,194,771

LIABILITIES Accounts Payable 1,095 497 1,592 Accounts Payable for Securities Purchased 19,482 8,840 28,322 Due to Other Funds 2,732 1,239 3,971 Obligations under Securities Lending 108,370 49,172 157,542 Accrued Payroll 19 8 27 Accrued Liabilities 7,845 3,559 11,404 Estimated Liability for Compensated Absences 61 28 89

Total Liabilities 139,604 63,343 202,947

NET ASSETS Held in Trust for Employees' Pension Benefits 1,370,133 1,370,133 Held in Trust for Employees' Post employment Healthcare Benefits 621,691 621,691 Combined Net Assets $ 1,370,133 $ 621,691 $ 1,991,824

201 CITY OF CINCINNATI, OHIO Combining Statement of Changes in Plan Net Assets Pension Trust For the year ended December 31, 2009 (Amounts in Thousands) Pension Healthcare Total ADDITIONS Contributions: Member $ 12,417 $ $ 12,417 Employer 26,650 3,812 30,462 Other 1,785 1,785 Total Contributions 39,067 5,597 44,664 Transfers from Other Retirement Systems 315 315 Investment Income From Investing Activities: Interest & Dividends 34,675 16,026 50,701 Net Appreciation in Fair Value of Investments 195,103 90,171 285,274

Total Investment Earnings 229,778 106,197 335,975 Less Investment Management Expenses 3,552 1,641 5,193 Net Income From Investing Activities 226,226 104,556 330,782

From Security Lending Activities: Securities Lending Income 871 402 1,273 Securities Lending Expense: Borrower Rebates 7 3 10 Management Fees (211) (97) (308) Total Securities Lending Expenses (204) (94) (298) Net Income from Securities Lending Activities 667 308 975

Total Additions 266,275 110,461 376,736

DEDUCTIONS Benefits Payments: Pension and Annuities 132,466 132,466 Hospital and Medical Care 56,364 56,364 Medicare 3,854 3,854 Dental Benefits 1,940 1,940 Vision Benefits 172 172 Death Benefits, Active and Retired 1,329 1,329 Loss Due to Death of Members with Loans 6 6 Transfers - Retirement to Other Systems 1,974 1,974 Total Benefits Payments 135,775 62,330 198,105 Refunds of Contributions 1,378 1,378

Administrative Expenses: Personal Services 460 215 675 Contractual Services 554 259 813 Materials and Supplies 8 3 11 Depreciation 48 22 70 Total Administration Expenses 1,070 499 1,569 Total Deductions 138,223 62,829 201,052 Change in Net Assets 128,052 47,632 175,684 Net Assets held in Trust for Benefits Beginning of Year 1,242,081 574,059 1,816,140 End of Year $ 1,370,133 $ 621,691 $ 1,991,824

202 CITY OF CINCINNATI, OHIO Combining Statement of Fiduciary Assets and Liabilities Agency Funds December 31, 2009 (Amounts in Thousands)

Agency Funds Towing Charges Convention Admissions Metropolitan Private Facility Tax Engineering Sewer Operators Authority Bonds Deposits District Total ASSETS Equity in City Treasury Cash $ 353 $ 203 $ 27 $ 2,543 $ $ 3,126 Investments, at fair value 368,287 368,287 Receivables: Accounts, Net 7 4 1 177 35,872 36,061 Accrued Interest and Dividends 2,776 2,776 Total Assets $ 360 $ 207 $ 28 $ 2,720 $ 406,935 $ 410,250

203 LIABILITIES Accounts Payable $ $ $ $ 1 $ 15,671 $ 15,672 Due to Other Governments 275 364,737 365,012 Accrued Payroll 1,843 1,843 Accrued Liabilities 37 37 Deposits Payable 85 207 28 2,719 3,039 Estimated Liability for Compensated Absences 8,505 8,505 Net Pension Obligation 11,056 11,056 Net Other Post Employment Benefit Obligation 5,086 5,086 Total Liabilities $ 360 $ 207 $ 28 $ 2,720 $ 406,935 $ 410,250 CITY OF CINCINNATI, OHIO Combining Statement of Changes in Assets and Liabilities Agency Funds For the year ended December 31, 2009 (Amounts in Thousands) Balance Balance January 1, December 31, 2009 Additions Deductions 2009

TOWING CHARGES - PRIVATE OPERATORS ASSETS Equity in City Treasury Cash $ 333 $ 733 $ 713 $ 353 Accounts Receivable 7 7 7 7 Total Assets 340 740 720 360

LIABILITIES Accounts Payable $ 23 $ 400 $ 423 $ Due to Other Governments 300 275 300 275 Deposits Payable 17 1,449 1,381 85 Total Liabilities $ 340 $ 2,124 $ 2,104 $ 360

CONVENTION FACILITY AUTHORITY ASSETS Equity in City Treasury Cash $ 244 $ 1,474 $ 1,515 $ 203 Accounts Receivable 6 4 6 4 Total Assets $ 250 $ 1,478 $ 1,521 $ 207

LIABILITIES Due to Other Governments $ 250 $ $ 250 $ Deposits Payable 1,990 1,783 207 Total Liabilities $ 250 $ 1,990 $ 2,033 $ 207

ADMISSION TAX BONDS ASSETS Equity in City Treasury Cash $ 27 $ 1 $ 1 $ 27 Accounts Receivable $ 1 1 1 1 Total Assets $ 28 $ 2 $ 2 $ 28

LIABILITIES Deposits Payable $ 28 $ 1 $ 1 $ 28

ENGINEERING DEPOSITS ASSETS Cash and Cash Equivalents $ $ 137 $ 137 $ Equity in City Treasury Cash 2,717 1,940 2,114 2,543 Accounts Receivable 117 322 262 177 Total Assets $ 2,834 $ 2,399 $ 2,513 $ 2,720

LIABILITIES Accounts Payable $ 3 $ 1 $ 3 $ 1 Deposits Payable 2,831 2,465 2,577 2,719 $ 2,834 $ 2,466 $ 2,580 $ 2,720

204 CITY OF CINCINNATI, OHIO Combining Statement of Changes in Assets and Liabilities Agency Funds For the year ended December 31, 2009 (Amounts in Thousands) Balance Balance January 1, December 31, 2009 Additions Deductions 2009 METROPOLITAN SEWER DISTRICT ASSETS Investments $ 295,107 $ 1,492,097 $ 1,418,917 $ 368,287 Accounts Receivable 32,590 38,259 34,977 35,872 Accrued Interest Receivable 828 2,778 830 2,776 Inventory 178 178 Total Assets $ 328,525 $ 1,533,312 $ 1,454,902 $ 406,935

LIABILITIES Accounts Payable 14,613 281,974 280,916 15,671 Due to Other Governments 293,573 468,375 397,211 364,737 Accrued Payroll 1,643 2,034 1,834 1,843 Accrued Liabilities 31 37 31 37 Estimated Liability for Compensated Absences 7,607 898 8,505 Net Pension Obligation 7,627 3,429 11,056 Net Other Post Employment Benefit Obligation 3,431 1,655 5,086 Total Liabilities $ 328,525 $ 758,402 $ 679,992 $ 406,935

TOTAL AGENCY FUNDS ASSETS Cash and Cash Equivalents $ $ 137 $ 137 $ Equity in City Treasury Cash 3,321 4,148 4,343 3,126 Investments 295,107 1,492,097 1,418,917 368,287 Receivables: Accounts, Net 32,721 38,593 35,253 36,061 Accrued Interest Receivable 828 2,778 830 2,776 Inventory 178 178 Total Assets $ 331,977 $ 1,537,931 $ 1,459,658 $ 410,250

LIABILITIES Accounts Payable 14,639 282,375 281,342 15,672 Due to Other Governmental Agencies 294,123 468,650 397,761 365,012 Accrued Payroll 1,643 2,034 1,834 1,843 Accrued Liabilities 31 37 31 37 Deposits Payable 2,876 5,905 5,742 3,039 Estimated Liability for Compensated Absences 7,607 898 8,505 Net Pension Obligation 7,627 3,429 11,056 Net Other Post Employment Benefit Obligation 3,431 1,655 5,086 Total Liabilities $ 331,977 $ 764,983 $ 686,710 $ 410,250

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206

CAPITAL ASSETS USED IN THE

OPERATION OF GOVERNMENTAL FUNDS

207

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208 CITY OF CINCINNATI, OHIO Comparative Schedule of Capital Assets Used in the Operation of Governmental Funds Schedule by Source December 31 (Amounts In Thousands)

2009 2008 Governmental Funds Capital Assets

Land $ 172,685 $ 167,875 Buildings 184,550 149,947 Improvements 354,843 338,485 Machinery and Equipment 152,952 153,942 Infrastructure 724,149 666,826 Construction in Progress 119,774 132,208 Property acquired under capital leases 1,675 1,173

Total Governmental Capital Assets $ 1,710,628 $ 1,610,456

Investment in Governmental Capital Assets $ 1,710,628 $ 1,610,456

Investment in Governmental Capital Assets by Source:

Permanent Improvement Fund or General Obligation Bonds $ 1,077,888 $ 1,011,343 Federal Grants 81,555 82,035 State Grants 166,059 155,265 County Grants 7,101 6,962 Private 12,973 12,114 General Fund Revenues 93,995 88,297 Special Revenue Funds 35,417 33,922 Gifts 2,529 2,529 Other and Undifferentiated 233,111 217,989

Total from All Sources $ 1,710,628 $ 1,610,456

209 CITY OF CINCINNATI, OHIO Schedule of Capital Assets Used in the Operation of Governmental Funds Schedule by Function and Activity As of December 31, 2009 (Amounts In Thousands)

Property Acquisition under Capital Construction Total Land Buildings Improvements Equipment Infrastructure Leases In Progress

Mayor and Council $ 92 $ $ $ $ 92 $ $ $ City Manager 701 48 506 147 Economic Development 9,483 4,013 5,470 Law 71 52 19 Human Resources 5,741 5,724 17 Finance 1,039 710 310 19 Regional Computer Center 3,836 3,836 Community Development 128,762 64,059 2,252 45,693 68 16,690 Recreation 129,190 6,913 33,379 84,732 3,932 208 26 Parks 48,419 12,722 12,811 11,515 3,256 8,115 Buildings and Inspections 517 91 426 Public Safety 73,242 1,591 7,852 10,499 52,215 1,085 Transportation & Engineering 736,446 25,304 5,450 11,947 1,086 692,659 Enterprise Services 1,074 297 777

210 Public Services 60,919 980 6,074 27,236 25,769 860 Public Health 14,187 237 2,748 8,491 2,682 29 Pooled, Unassigned Equipment 911 911 Southern Railway Improvement 83,224 83,224 General Government Land 60,299 60,299 Buildings 113,664 113,664 Improvements 51,745 51,745

Total Governmental Capital Assets Allocated by Function 1,523,562 172,402 184,278 345,620 95,935 724,149 1,178

Construction in Progress 119,774 119,774

Internal Service Funds: Purchasing, Printing and Stores 1,748 1,251 497 Fleet Services 6,258 283 272 4,345 1,358 Property Management 21 6 15 Self Insurance Medical 8 8 Regional Computer Center 59,257 4,872 54,385

Total Governmental Capital Assets $ 1,710,628 $ 172,685 $ 184,550 $ 354,843 $ 152,952 $ 724,149 $ 1,675 $ 119,774 CITY OF CINCINNATI, OHIO Schedule of Capital Assets Used in the Operation of Governmental Funds Schedule of Changes by Function and Activity For the Year Ended December 31, 2009 (Amounts in Thousands)

General General Capital Assets Capital Assets January 1, 2009 Additions Deletions December 31, 2009

Mayor and Council $ 92 $ $ $ 92

City Manager 353 348 701

Economic Development 9,106 377 9,483

Law 52 19 71

Human Resources 4,416 1,325 5,741

Regional Computer Center 3,823 13 3,836

Finance 310 729 1,039

Community Development 121,984 7,459 681 128,762

Recreation 115,028 14,317 155 129,190

Parks 41,566 6,941 88 48,419

Buildings and Inspections 517 517

Public Safety 65,790 8,512 1,060 73,242

Transportation & Engineering 684,255 67,124 14,933 736,446

Enterprise Services 1,167 13 106 1,074

Public Services 55,767 5,326 174 60,919

Public Health 13,492 695 14,187

Pooled, Unassigned Equipment 911 911

Southern Railway Improvement 83,224 83,224

General Government Land 58,700 1,599 60,299 Buildings 90,557 23,107 113,664 Improvements 51,745 51,745 Construction in Progress 132,208 106,785 119,219 119,774

Internal Service Funds: Purchasing, Printing and Stores 889 859 1,748 Fleet Services 6,392 100 234 6,258 Property Management 21 21 Self Insurance Medical 8 8 Regional Computer Center 68,091 5,909 14,743 59,257

Total Governmental Capital Assets $ 1,610,456 $ 251,565 $ 151,393 $ 1,710,628

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212

SCHEDULE

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214 CITY OF CINCINNATI, OHIO Outstanding Bonds and Notes December 31, 2009

~General Obligation #Municipal Bonds Income Tax @Water Works *Revenue @Police & Fire Year and Notes Bonds & Notes Bonds Bonds & Notes Pension Bonds 2000 $164,800,000 $25,563,000 $96,500,000 $ 12,346,000 $41,050,000 2001 175,340,000 23,780,000 82,180,000 104,504,000 40,620,000 2002 195,500,000 14,097,000 67,810,000 108,407,000 40,170,000 2003 221,750,000 11,717,000 53,340,000 237,450,000 39,700,000 2004 220,620,000 5,937,000 41,510,000 228,152,000 39,205,000 2005 217,710,000 13,560,000 31,380,000 332,094,000 42,935,000 2006 223,225,000 22,995,000 22,950,000 321,282,337 42,935,000 2007 222,868,000 42,655,000 16,400,000 391,750,000 42,365,000 2008 223,695,000 50,095,000 11,800,000 406,010,000 41,515,000 2009 220,385,000 71,910,000 9,800,000 496,105,000 40,630,000

++Urban @Off-Street Development @Recreational Parking @ Urban Renewal/ *Sewer Admin Taxable Facility Facilities Economic Development Building Year Bonds Bonds & Notes Bonds Bonds & Notes Bonds & Notes 2000 $7,000,000 $14,975,000 $ 2,100,000 $16,450,000 $ ---- 2001 6,790,000 13,855,000 1,750,000 16,440,000 ---- 2002 6,570,000 12,265,000 10,500,000 20,595,000 ---- 2003 6,335,000 10,910,000 10,150,000 18,490,000 ---- 2004 6,090,000 9,545,000 700,000 33,085,000 ---- 2005 5,830,000 8,375,000 350,000 35,046,800 ---- 2006 5,555,000 10,090,000 ---- 37,694,301 ---- 2007 5,265,000 10,435,000 ---- 26,640,000 ---- 2008 4,960,000 9,820,000 ---- 25,835,000 12,800,000 2009 5,080,000 8,955,000 ---- 31,080,000 15,000,000

Gross Gross @Urban Tax Revenue Gross @Stormwater Redevelopment Supported Supported Total Year Bonds and Notes Bonds and Notes Debt Debt Debt 2000 $6,075,000 $ 2,795,000 $164,800,000 $224,854,000 $389,654,000 2001 5,150,000 12,180,000 175,340,000 307,249,000 482,589,000 2002 4,225,000 7,305,000 195,500,000 291,944,000 487,444,000 2003 3,300,000 16,625,000 221,750,000 408,017,000 629,767,000 2004 2,375,000 16,235,000 220,620,000 382,834,000 603,454,000 2005 1,450,000 14,885,000 217,710,000 485,905,800 703,615,800 2006 725,000 13,565,000 223,225,000 477,791,638 701,016,638 2007 ---- 12,230,000 222,868,000 547,740,000 770,608,000 2008 ---- 10,870,000 223,695,000 573,705,000 797,400,000 2009 1,250,000 9,485,000 220,385,000 689,295,000 909,680,000

~ Supported by general tax levy or special assessment levy. # Supported by Municipal Income Tax, but have property tax support if necessary. @ Supported by current revenue, but have property tax support if necessary. * Supported by current revenue, no tax support pledged. ++ Supported by current revenue, but have property tax support if necessary-taxable.

215

CITY OF CINCINNATI SCHEDULE OF ANNUAL DEBT SERVICE December 31, 2009

PROPERTY TAX-SUPPORTED SELF-SUPPORTED

Debt Outstanding Debt Outstanding Interest Service Debt Interest Service Debt Year Maturing Cost Requirement End of Year Maturing Cost Requirement End of Year Year 2009 $ 220,385,000 $ 121,280,000 2009 2010 $ 29,470,000 $ 9,637,860 $ 39,107,860 190,915,000 $ 14,250,000 $ 5,087,606 $ 19,337,606 107,030,000 2010 2011 24,450,000 8,551,188 33,001,188 166,465,000 8,130,000 4,730,336 12,860,336 98,900,000 2011 2012 23,905,000 7,512,363 31,417,363 142,560,000 8,135,000 4,396,858 12,531,858 90,765,000 2012 2013 22,680,000 6,513,006 29,193,006 119,880,000 6,795,000 4,066,621 10,861,621 83,970,000 2013 2014 21,240,000 5,539,581 26,779,581 98,640,000 6,690,000 3,790,240 10,480,240 77,280,000 2014 2015 18,755,000 4,600,750 23,355,750 79,885,000 4,985,000 3,515,814 8,500,814 72,295,000 2015 2016 16,555,000 3,733,831 20,288,831 63,330,000 4,890,000 3,310,424 8,200,424 67,405,000 2016 2017 14,295,000 2,959,606 17,254,606 49,035,000 4,715,000 3,105,522 7,820,522 62,690,000 2017 2018 11,480,000 2,261,506 13,741,506 37,555,000 4,850,000 2,895,289 7,745,289 57,840,000 2018 2019 9,100,000 1,749,306 10,849,306 28,455,000 4,700,000 2,682,201 7,382,201 53,140,000 2019 2020 7,030,000 1,328,781 8,358,781 21,425,000 4,780,000 2,466,984 7,246,984 48,360,000 2020 2021 4,170,000 992,981 5,162,981 17,255,000 4,340,000 2,233,557 6,573,557 44,020,000 2021 2022 3,875,000 793,681 4,668,681 13,380,000 3,930,000 2,017,192 5,947,192 40,090,000 2022 2023 3,410,000 613,263 4,023,263 9,970,000 4,075,000 1,822,212 5,897,212 36,015,000 2023 2024 3,055,000 460,406 3,515,406 6,915,000 4,230,000 1,637,417 5,867,417 31,785,000 2024 2025 2,530,000 324,288 2,854,288 4,385,000 3,785,000 1,440,034 5,225,034 28,000,000 2025 2026 2,130,000 207,719 2,337,719 2,255,000 3,945,000 1,266,695 5,211,695 24,055,000 2026 2027 1,355,000 108,150 1,463,150 900,000 3,635,000 1,085,619 4,720,619 20,420,000 2027 2028 655,000 42,425 697,425 245,000 3,780,000 919,420 4,699,420 16,640,000 2028 2029 $ 245,000 $ 11,025 $ 256,025 $ 0 3,435,000 748,800 4,183,800 13,205,000 2029 2,295,000 594,225 2,889,225 10,910,000 2030 2,390,000 490,950 2,880,950 8,520,000 2031 MUNICIPAL INCOME TAX SUPPORTED 2,490,000 383,400 2,873,400 6,030,000 2032 2,410,000 271,350 2,681,350 3,620,000 2033 Debt Outstanding 2,520,000 162,900 2,682,900 1,100,000 2034 Interest Service Debt $ 1,100,000 $ 49,500 $ 1,149,500 $ 0 2035 Year Maturing Cost Requirement End of Year 2009 $ 71,910,000 2010 $ 4,325,000 $ 3,006,605 $ 7,331,605 67,585,000 2011 4,350,000 2,836,893 7,186,893 63,235,000 2012 4,365,000 2,677,780 7,042,780 58,870,000 2013 4,385,000 2,519,518 6,904,518 54,485,000 2014 4,405,000 2,367,618 6,772,618 50,080,000 2015 4,420,000 2,208,805 6,628,805 45,660,000 2016 4,415,000 2,032,738 6,447,738 41,245,000 2017 4,435,000 1,864,913 6,299,913 36,810,000 2018 4,165,000 1,682,488 5,847,488 32,645,000 2019 3,915,000 1,504,188 5,419,188 28,730,000 TOTAL 2020 3,735,000 2,898,188 6,633,188 24,995,000 2021 3,485,000 1,142,038 4,627,038 21,510,000 Debt Outstanding 2022 3,125,000 972,538 4,097,538 18,385,000 Interest Service Debt 2023 3,165,000 823,288 3,988,288 15,220,000 Maturing Cost Requirement End of Year Year 2024 3,195,000 684,313 3,879,313 12,025,000 $ 909,680,000 2009 2025 3,130,000 541,763 3,671,763 8,895,000 $ 66,050,000 $ 42,397,234 $ 108,447,234 843,630,000 2010 2026 2,975,000 401,938 3,376,938 5,920,000 54,645,000 40,090,544 94,735,544 788,985,000 2011 2027 2,715,000 261,494 2,976,494 3,205,000 55,500,000 35,917,649 91,417,649 733,485,000 2012 2028 1,800,000 146,100 1,946,100 1,405,000 53,645,000 35,313,072 88,958,072 679,840,000 2013 2029 $ 1,405,000 $ 63,225 $ 1,468,225 $ 0 53,175,000 32,942,926 86,117,926 626,665,000 2014 53,150,000 30,559,711 83,709,711 573,515,000 2015 51,365,000 28,147,051 79,512,051 522,150,000 2016 REVENUE 49,670,000 25,831,952 75,501,952 472,480,000 2017 48,020,000 23,462,974 71,482,974 424,460,000 2018 Debt Outstanding 46,720,000 21,186,150 67,906,150 377,740,000 2019 Interest Service Debt 45,905,000 20,632,620 66,537,620 331,835,000 2020 Year Maturing Cost Requirement End of Year 44,010,000 16,850,817 60,860,817 287,825,000 2021 2009 $ 496,105,000 36,135,000 14,715,909 50,850,909 251,690,000 2022 2010 $ 18,005,000 $ 24,665,162 $ 42,670,162 478,100,000 37,975,000 12,950,391 50,925,391 213,715,000 2023 2011 17,715,000 23,972,127 41,687,127 460,385,000 28,210,000 11,163,677 39,373,677 185,505,000 2024 2012 19,095,000 21,330,649 40,425,649 441,290,000 28,000,000 9,835,617 37,835,617 157,505,000 2025 2013 19,785,000 22,213,927 41,998,927 421,505,000 19,780,000 8,464,249 28,244,249 137,725,000 2026 2014 20,840,000 21,245,487 42,085,487 400,665,000 19,195,000 7,436,627 26,631,627 118,530,000 2027 2015 24,990,000 20,234,342 45,224,342 375,675,000 18,390,000 6,447,198 24,837,198 100,140,000 2028 2016 25,505,000 19,070,058 44,575,058 350,170,000 17,905,000 5,482,435 23,387,435 82,235,000 2029 2017 26,225,000 17,901,910 44,126,910 323,945,000 15,210,000 4,537,631 19,747,631 67,025,000 2030 2018 27,525,000 16,623,691 44,148,691 296,420,000 16,040,000 3,701,114 19,741,114 50,985,000 2031 2019 29,005,000 15,250,455 44,255,455 267,415,000 17,435,000 2,817,930 20,252,930 33,550,000 2032 2020 30,360,000 13,938,667 44,298,667 237,055,000 12,235,000 1,859,424 14,094,424 21,315,000 2033 2021 32,015,000 12,482,241 44,497,241 205,040,000 11,880,000 1,154,432 13,034,432 9,435,000 2034 2022 25,205,000 10,932,498 36,137,498 179,835,000 2,480,000 457,038 2,937,038 6,955,000 2035 2023 27,325,000 9,691,629 37,016,629 152,510,000 1,535,000 339,981 1,874,981 5,420,000 2036 2024 17,730,000 8,381,541 26,111,541 134,780,000 1,610,000 264,856 1,874,856 3,810,000 2037 2025 18,555,000 7,529,533 26,084,533 116,225,000 $ 3,810,000 $ 186,063 $ 3,996,063 $ 0 2038 2026 10,730,000 6,587,898 17,317,898 105,495,000 2027 11,490,000 5,981,364 17,471,364 94,005,000 2028 12,155,000 5,339,253 17,494,253 81,850,000 2029 12,820,000 4,659,385 17,479,385 69,030,000 2030 12,915,000 3,943,406 16,858,406 56,115,000 2031 13,650,000 3,210,164 16,860,164 42,465,000 2032 14,945,000 2,434,530 17,379,530 27,520,000 2033 9,825,000 1,588,074 11,413,074 17,695,000 2034 9,360,000 991,532 10,351,532 8,335,000 2035 1,380,000 407,538 1,787,538 6,955,000 2036 1,535,000 339,981 1,874,981 5,420,000 2037 1,610,000 264,856 1,874,856 3,810,000 2038 $ 3,810,000 $ 186,063 $ 3,996,063 $ 0 216 CITY OF CINCINNATI, OHIO Schedule of Expenditures of Federal Awards (Non-GAAP Budgetary Basis) For the year ended December 31, 2009 (Amounts in thousands)

Grant and Contract Contributions and other Grantor/Program Title Fund CFDA # Grant # Agency Revenue Received Revenue CFS Expenditures

U.S. Department of Agriculture Passed through Ohio Department of Education * CACFP- Child & Adult Care Food Program 324 10.558 009070 NAR Recreation 107 0 (89) Total for CFDA No. 10.558 107 0 (89)

TOTAL DEPARTMENT OF AGRICULTURE 3,086 (2,939)

1 U.S. Department of Health & Human Services * Passed through Ohio Department of Health * Social Services Block Grant 323 93.667 APR Recreation 17 (17) Total for CFDA No. 93.667 17 0 (17)

* Special Programs for the Aging Title III Part C 324 93.045 NAR Recreation 241 15 (286) (a.) Total for CFDA No. 93.045 241 15 (286)

* Passed through YMCA of Greater Cincinnati * TANF - Child Care Services 323 93.558 APR Recreation 35 (35) Total for CFDA No. 93.558 35 0 (35)

* STD Control Program 378 93.977 31-2-001-2-ST-0109 NAM Health 21 * STD Control Program 378 93.977 31-2-001-2-ST-0210 NAM Health 84 (84) Total for CFDA No. 93.977 105 0 (84)

TOTAL DEPARTMENT OF HEALTH AND HUMAN SERVICES 3,565 15 (3,383)

* Emergency Shelter Grant 445 14.231 S-08-MC-39-0003 NAO Comm Dev 109 (109) * Emergency Shelter Grant 445 14.231 S-09-MC-39-0003 NAO Comm Dev 502 (502) Total for CFDA No. 14.231 611 0 (611)

217 CITY OF CINCINNATI, OHIO Schedule of Expenditures of Federal Awards (Non-GAAP Budgetary Basis) For the year ended December 31, 2009 (Amounts in thousands)

Grant and Contract Contributions and other Grantor/Program Title Fund CFDA # Grant # Agency Revenue Received Revenue CFS Expenditures

Empowerment Zone 324 14.244 NAR Recreation Empowerment Zone 386 14.244 EZ-99-04-0009 NAO Comm Dev 1,021 (1,560) Total for CFDA No. 14.244 1,021 0 (1,560)

FY06 HUD Grant 472 14.246 B-06-SP-OH-0779 NAS FIRE 59 (56) Total for CFDA No 14.246 59 0 (56)

ARRA - Neighborhood Stabilization Program 438 14.256 B08MN39003 NAO Comm Dev 764 136 (1,099) Total for CFDA No 34.002 764 136 (1,099)

ARRA - Homeless Prevention & Rapid Re-Hsg Prog 502 14.257 S-09-MY-39-0003 NAO Comm Dev 0 (278) Total for CFDA No 14.257 0 0 (278)

Lead Hazard Control Grant 381 14.900 OHLHB0360-07 NAM HEALTH 1,354 (1,366) Cincinnati Lead Abatement Program 387 14.900 OHLHD0187-08 NAO Comm Dev 46 (46) Total for CFDA No. 14.900 1,399 0 (1,411)

TOTAL DEPARTMENT OF HOUSING & URBAN DEVELOPMENT 24,493 2,937 (53,567)

TOTAL DEPARTMENT OF THE INTERIOR 15 0 (10)

* Passed through Ohio Office of Criminal Justice Services * VALU/SVAA 368 16.575 2009-SAGENE757 NAS Police 50 (49) Total for CFDA No. 16.575 50 0 (49)

* Passed through Ohio Office of Criminal Justice Services * Project Safe Neighborhood 368 16.609 2003-PS-PSN-300 NAS Police 21 (21) Total for CFDA No. 16.609 21 0 (21)

2008 Earmark-Cameras 368 16.753 2008-DD-BX-0175 NAS Police 779 0 (787) Total for CFDA No. 16.753 779 0 (787)

ARRA - 2009 JAG Recovery Act 501 16.804 2009-SB-B9-1187 NAS Police 2,993 0 (2,105) Total for CFDA No. 16.804 2,993 0 (2,105)

TOTAL DEPARTMENT OF JUSTICE 5,983 11 (4,984)

6 U.S. Department of Transportation FAA/ODOT Local Match '08 980 20.106 08-06 CP 980 259 0 (25) Total for CFDA No. 20.106 259 0 (25)

218 CITY OF CINCINNATI, OHIO Schedule of Expenditures of Federal Awards (Non-GAAP Budgetary Basis) For the year ended December 31, 2009 (Amounts in thousands)

Grant and Contract Contributions and other Grantor/Program Title Fund CFDA # Grant # Agency Revenue Received Revenue CFS Expenditures

TOTAL DEPARTMENT OF TRANSPORTATION 8,785 0 (8,691)

* Passed through Cinn Metropolitan Housing Authority * Neighborhood Housing 980 66.202 XP-96549101-0 CP 980 0 0 (1) Total for CFDA No .66.202 0 0 (1)

Brownfield Job Training 474 66.815 JT96546102 NAL Comm Dev 116 (116) Total for CFDA No .66.815 116 0 (116)

TOTAL ENVIRONMENTAL PROTECTION AGENCY 116 0 (116)

Park Infrastructure Rehab 980 15.919 39-CTY-1610-01-01 CP 980 0 (65) Total for CFDA No. 15.919 0 0 (65)

TOTAL NATIONAL PARK SERVICE 0 0 (65)

9 Department of Homeland Security * Passed through Hamilton County Emergency Mgt. Agency

04SHSGP NAS Fire (53) (253) 05SHSGP NAS Fire 15 9 06SHSCP NAS Fire 0 0 (177) * Homeland Security Grant Program 97.073 08SHSCP - HM NAS Fire 27 2 (27) Total for CFDA No . 97.073 (11) 2 (448)

* Passed through Ohio Dept. of Public Safety * FEMA-Windstorm 479 97.036 FEMA 1805-DR-061-15000 NAO Finance 2,723 (65) Total for CFDA No . 97.036 2,723 0 (65)

FY08 AFG Grant 472 97.044 EMW-2008-F0-12072 NAS Fire 0 (9) Fire Prevention & Safety Grant 343 97.044 EMW-2006-FP-02745 NAS Fire 0 0 3 Total for CFDA No . 97.044 0 0 (5)

TOTAL DEPARTMENT OF HOMELAND SECURITY 2,898 2 (701)

Dept of Energy * ARRA -Energy Efficiency & Conservation Block Grant 502 81.128 DE-EE0000704 NAO EQ 29 (29) Total for CFDA No . 81.128 29 0 (29)

TOTAL DEPARTMENT OF ENERGY 29 0 (29)

TOTAL FEDERAL GRANTS & SUBSIDIES (Non-GAAP Basis) $ 48,970 $ 2,965 $ (74,486)

Amount Recognized as Federal Grants & Subsidies (GAAP Basis) $ 39,397

* Indicates Federal monies passed through another agency to the City of Cincinnati. (a) Indicates an Aging Cluster

Total Community Development loans outstanding at December 31, 2009 totaled $35,076,329 under CFDA 14.218 and $25,685,593 under CFDA 14.239.

219 220

Statistical

Section

221

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222 CITY OF CINCINNATI, OHIO

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STATISTICAL SECTION

This section of the City of Cincinnati’s comprehensive annual financial report provides detailed historical and economic information for users of the financial statements, notes to the financial statements, and required supplementary information for the purpose of assessing and evaluating the City’s economic condition.

Financial Trends – This section provides information on the City’s net assets, changes to net assets and fund balance for assessing the changes in financial position over time.

Revenue Capacity – This section provides information on the City’s ability to generate revenue, specifically income tax (the major source of revenue for governmental activities) and property tax revenue.

Debt Capacity Information – This section provides information on the City’s outstanding debt, debt limitations and the ability to leverage and pay future debt.

Demographic and Economic Information – This section provides information about the environment in which the City operates.

Operating Information – This section provides operating information related to the City’s infrastructure, assets and services provided by function.

Sources: Unless otherwise noted, the information in these statistical schedules is from the comprehensive annual financial reports for the relevant years. The City implemented GASB 34 in 2002; schedules presenting government wide information include information beginning in that year.

223 (This page intentionally left blank.)

224 City of Cincinnati Financial Trends Information Schedule 1 Net Assets by Category Last Eight Fiscal Years (Amounts in Thousands)

Fiscal Year 2002 2003 2004 2005 2006 2007 2008 2009 Governmental Activities Invested in capital assets, net of related debt $ 490,028 $ 534,066 $ 612,373 $ 631,671 $ 648,232 $ 648,708 $ 645,883 $ 674,690 Restricted 197,516 176,263 141,202 151,260 158,416 176,785 162,774 133,750 Unrestricted 77,502 86,312 44,747 37,601 38,353 37,165 64,412 60,588

Subtotal governmental activities net assets 765,046 796,641 798,322 820,532 845,001 862,658 873,069 869,028

Business-Type activities Invested in capital assets, net of related debt 526,297 566,748 639,500 715,004 752,246 739,650 707,549 705,909 Restricted 3,435 4,452 3,004 48,974 51,409 84,453 42,929 47,438 Unrestricted 105,627 85,048 75,868 23,457 23,562 17,250 95,424 97,175

Subtotal business-type activities net assets 635,359 656,248 718,372 787,435 827,217 841,353 845,902 850,522

Primary Government Invested in capital assets, net of related debt 1,016,325 1,100,814 1,251,873 1,346,675 1,400,478 1,388,358 1,353,432 1,380,599 Restricted 200,951 180,715 144,206 200,234 209,825 261,238 205,703 181,188 Unrestricted 183,129 171,360 120,615 61,058 61,915 54,415 159,836 157,763

Total primary government net assets $ 1,400,405 $ 1,452,889 $ 1,516,694 $ 1,607,967 $ 1,672,218 $ 1,704,011 $ 1,718,971 $ 1,719,550 225 2,000,000 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 - 2004 2005 2006 2007 2008 2009

Governmental Net Assets Business Type Net Assets

2,000,000 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 - 2004 2005 2006 2007 2008 2009

Restricted Net Assets Total Net Assets City of Cincinnati, Ohio Financial Trends Information Schedule 2 Changes in Net Assets Last Eight Fiscal Years (Amounts in Thousands)

Fiscal Year 2002 2003 2004 2005 2006 2007 2008 2009 Program Revenues Governmental Activities: Charges for Services General Government $ 73,052 $ 84,702 $ 101,089 $ 91,650 $ 92,798 $ 98,413 $ 100,874 $ 107,959 Community Development 1,468 1,644 1,041 676 706 1,274 2,488 408 Parks and Recreation 5,922 6,217 6,726 5,915 6,939 7,103 6,833 7,314 Public Safety 8,141 7,634 9,281 12,562 16,410 12,083 16,404 14,230 Transportation and Engineering 447 393 1,278 1,189 1,247 1,185 1,583 85 General Services 3,926 Public Services 1,106 1,858 2,066 2,212 1,976 2,256 3,078 5,735 Public Health 9,046 9,026 8,009 8,582 8,286 9,060 8,216 9,607 Operating Grants and Contributions 56,719 53,721 43,405 43,148 62,757 38,051 43,632 54,101 Capital Grants and Contributions 21,247 27,323 16,834 13,478 9,954 12,559 21,502 22,951

Total governmental activities program revenue 181,074 192,518 189,729 179,412 201,073 181,984 204,610 222,390 Business-type activities Charges for Services Water Works 88,192 87,538 90,877 98,689 101,057 117,494 119,228 115,377 Parking Facilities 7,576 7,885 8,969 8,827 8,196 8,567 8,814 8,860 Convention Center 3,347 2,994 2,841 1,776 3,676 6,209 6,440 5,236 General Aviation 1,595 1,867 1,901 1,786 1,669 1,887 2,029 1,932 Municipal Golf 5,966 5,811 6,080 5,949 6,129 6,457 6,414 6,458 Stormwater Management 7,335 7,348 7,224 7,063 7,230 8,713 8,692 8,756 Capital Grants and Contributions 14,641 12,190 43,028 61,017 32,711 5,140 5,293 9,971

Total business-type activities program revenues 128,652 125,633 160,920 185,107 160,668 154,467 156,910 156,590

Total primary government program revenues $ 309,726 $ 318,151 $ 350,649 $ 364,519 $ 361,741 $ 336,451 $ 361,520 $ 378,980

Expenses Governmental Activities: General Government $ 102,323 $ 115,988 $ 119,686 $ 127,826 $ 139,436 $ 141,045 $ 139,727 $ 140,573 Economic Development 68 0 - - Community Development 52,327 65,028 60,367 39,235 56,751 45,910 48,658 44,194 Parks and Recreation 34,647 35,496 37,033 39,438 40,848 42,069 44,616 42,345 Public Safety 182,135 192,370 205,338 218,576 224,724 235,945 247,924 253,413 Transportation and Engineering 24,042 25,378 30,529 26,472 37,271 37,734 37,965 42,361 Transit Systems 37,712 41,950 43,814 45,389 46,537 Enterprise Services 51,171 35,558 37,038 Public Services 40,036 44,662 46,477 48,125 47,268 53,166 60,227 48,987 Public Health 39,297 40,844 42,437 44,809 44,227 43,367 45,703 48,017 Interest on long-term debt 17,243 17,618 18,516 21,767 18,789 19,034 21,276 22,180

Total governmental activities expenses 543,221 572,942 597,421 603,960 651,332 662,084 691,485 688,607 Business-type activities Water Works 78,039 84,142 88,095 99,895 99,177 108,314 113,804 117,007 Parking Facilities 7,127 7,416 6,845 8,637 9,118 10,397 8,969 8,831 Convention Center 7,715 7,117 7,057 6,809 10,359 14,588 18,372 14,605 General Aviation 1,937 2,083 1,922 2,032 2,160 2,319 2,753 2,529 Municipal Golf 5,634 6,282 5,820 6,266 6,179 6,428 6,369 6,141 Stormwater Management 4,652 5,829 5,722 5,739 7,226 8,258 8,452 9,998

Total business-type activities expenses 105,104 112,869 115,461 129,378 134,219 150,304 158,719 159,111

Total primary government expenses $ 648,325 $ 685,811 $ 712,882 $ 733,338 $ 785,551 $ 812,388 $ 850,204 $ 847,718

Net (Expense)/Revenue Governmental activities $ (362,147) $ (380,424) $ (407,692) $ (424,548) $ (450,259) $ (480,100) $ (486,875) $ (466,217) Business-type activities 23,548 12,764 45,459 55,729 26,449 4,163 (1,809) (2,521) Total Primary Government Net Expense (338,599) (367,660) (362,233) (368,819) (423,810) (475,937) (488,684) (468,738) Continued

226 City of Cincinnati, Ohio Financial Trends Information Schedule 2 Changes in Net Assets Last Eight Fiscal Years (Amounts in Thousands)

(Continued) Fiscal Year 2002 2003 2004 2005 2006 2007 2008 2009 General Revenues and Other Changes in Net Assets Governmental activities: Tax Property taxes $ 64,051 $ 68,040 $ 67,614 $ 67,816 $ 79,996 $ 75,393 $ 75,062 $ 80,153 Income taxes 252,790 259,488 261,712 297,583 305,254 304,466 319,565 299,778 Admission taxes 3,446 4,075 3,890 3,691 4,494 4,309 4,570 4,028 Shared taxes 66,386 68,018 72,162 67,304 63,412 67,927 73,079 60,320 Occupancy Tax 1,449 1,810 1,909 1,874 2,131 2,222 1,884 Unrestricted Investment earnings 46,277 11,199 11,252 12,234 20,344 20,311 19,363 14,461 Miscellaneous 249 52 105 206 55 127 699 1,350 Special Item - Gain on Sale of Property 16,543 0 Loss on disposal of assets (5,331) Transfers between governmental and business-type activities (14,457) (302) (9,172) (3,985) (701) 3,500 2,726 202

Total governmental activities 413,411 412,019 409,373 446,758 474,728 494,707 497,286 462,176 Business-type activities: Tax Occupancy taxes 1,662 1,019 1,092 1,230 1,046 1,274 1,287 1,187 Unrestricted Investment earnings 3,879 2,396 2,272 4,176 7,278 8,380 6,320 3,662 Miscellaneous 2,455 4,780 4,129 3,943 4,308 3,819 2,455 2,494 Loss on disposal of assets (870) (372) 0 Special Item - Fixed Asset Impairment (978) 0 Transfers between governmental and business-type activities 14,457 302 9,172 3,985 701 3,500 (2,726) (202)

Total business-type activities 21,583 8,125 16,665 13,334 13,333 16,973 6,358 7,141

Total Primary Governmental Activities 434,994 420,144 426,038 460,092 488,061 511,680 503,644 469,317 Change in Net Assets Governmental activities $ 51,264 $ 31,595 $ 1,681 $ 22,210 $ 24,469 $ 14,607 $ 10,411 $ (4,041) Business-type activities 45,131 20,889 62,124 69,063 39,782 21,136 4,549 4,620 Total Primary Governmental Activities $ 96,395 $ 52,484 $ 63,805 $ 91,273 $ 64,251 $ 35,743 $ 14,960 $ 579

$120,000

$100,000

$80,000

$60,000

$40,000

$20,000

$- 2002 2003 2004 2005 2006 2007 2008 2009 $(20,000)

Change in Net Assets from Governmental Activities Change in Net Assets from Business-Type Activities

227 City of Cincinnati Financial Trends Information Schedule 3 Fund Balances, Governmental Funds Last Ten Fiscal Years (Amounts in Thousands)

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 General Fund Nonspendable $ 5,790 Reserved $ 12,241 $ 11,086 $ 12,263 $ 14,138 $ 12,894 $ 15,229 $ 13,712 $ 17,406 $ 13,226 Restricted Unreserved 38,577 38,239 53,078 51,339 48,539 55,994 57,392 56,058 53,471 Unrestricted: Committed 12,885 Assigned 36,106 Unassigned ------35,214 Total General Fund 50,818 49,325 65,341 65,477 61,433 71,223 71,104 73,464 66,697 89,995

Capital Projects Fund Nonspendable 17,213 Reserved 52,217 98,255 76,025 66,639 65,634 72,364 66,454 67,052 103,682 Restricted 118,630 Unreserved 59,576 77,571 112,658 97,142 87,925 94,921 94,446 109,614 105,996 Unrestricted: Committed 15,764 Assigned 31,550 Unassigned ------228 Total Capital Projects Fund 111,793 175,826 188,683 163,781 153,559 167,285 160,900 176,666 209,678 183,157

Debt Service Fund Nonspendable - Reserved 25,375 34,636 36,971 53,534 44,240 44,780 51,256 55,545 65,660 Restricted 73,137 Unreserved ------1,425 Unrestricted: Committed - Assigned - Unassigned ------Total Debt Service Fund 25,375 34,636 36,971 53,534 44,240 44,780 51,256 55,545 67,085 73,137

All Other Governmental Funds Nonspendable 3,447 Reserved 40,857 60,030 54,770 47,549 42,488 41,709 45,472 40,850 45,987 Restricted 52,111 Unreserved 36,284 16,902 12,431 19,918 23,789 31,275 31,898 36,644 35,684 Unrestricted: Committed Assigned 24,587 Unassigned ------(1,581) Total Other Governmental Funds 77,141 76,932 67,201 67,467 66,277 72,984 77,370 77,494 81,671 78,564

Total Fund Balance, Governmental Funds $ 265,127 $ 336,719 $ 358,196 $ 350,259 $ 325,509 $ 356,272 $ 360,630 $ 383,169 $ 425,131 $ 424,853

Estimated Liability for Compensated Absences $ 6,359 $ 6,645 $ 6,985 $ 7,248 $ 7,433 $ 7,624 $ 7,923 $ 8,340 $ 8,683 $ 10,623

Notes: In 2004 a reserve of fund balance was created for the Estimated Liability for Compensated Absences. In prior years this amount has been included in the liability section of the financial statements. Prior years have been restated. In 2009 GASB 54 was implemented which eliminated the reserved and unreserved classifications and replaced them with Nonspendable, Restricted and Unrestricted. Within the Unrestricted category three classifications of fund balance were created. They are Committed, Assigned and Unassigned. City of Cincinnati Financial Trends Information Schedule 4 Changes in Fund Balances, Governmental Funds Last Ten Fiscal Years (Amounts in Thousands)

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Revenues Taxes $ 314,404 $ 317,263 $ 317,356 $ 331,539 $ 339,750 $ 357,636 $ 384,108 $ 392,302 $ 398,520 $ 386,846 Licenses and Permits 8,975 9,647 9,483 9,331 9,844 10,449 10,917 11,516 11,302 12,045 Use of Money and Property 43,468 90,005 69,724 37,509 49,532 37,413 46,741 52,347 45,223 41,409 Special Assessments 3,425 3,300 3,987 3,762 3,918 4,183 4,048 4,257 4,327 4,383 Intergovernmental Revenue 65,333 70,092 73,332 75,209 72,095 75,976 67,800 69,001 77,737 71,514 Federal Grants 108,438 54,753 65,408 56,349 40,343 33,723 56,410 41,806 32,613 48,155 State Grants and Subsidies 17,526 43,605 8,757 6,853 8,933 3,283 7,545 4,429 22,584 10,461 Charges for Current Services 25,039 25,357 27,917 24,006 26,483 27,441 29,979 31,448 32,326 34,066 Miscellaneous 10,552 7,282 5,694 11,478 14,662 14,460 6,908 6,584 5,744 13,216

Total Revenue 597,160 621,304 581,658 556,036 565,560 564,564 614,456 613,690 630,376 622,095

Expenditures Current General Government 67,076 67,276 54,140 52,119 52,081 46,751 49,555 51,621 51,828 65,161 Community Development 15,030 46,978 27,128 10,283 9,575 8,934 13,087 11,418 Parks and Recreation 26,398 28,393 27,588 28,411 27,921 28,360 30,626 30,746 30,037 28,864 Public Safety 124,839 131,084 136,615 142,126 151,301 154,319 168,514 171,533 180,415 180,917 Transportation and Engineering 5,117 4,576 4,783 7,328 7,220 7,386 7,586 8,422 7,194 8,222 Transit System 37,672 41,950 43,820 45,389 46,537 General Services 48,661 49,241 46,654 35,558 37,588 -

229 Public Services 32,857 33,971 33,261 35,358 34,776 33,724 33,529 38,371 39,754 33,549 Public Health 31,863 33,738 33,497 34,632 35,056 34,225 34,752 33,461 32,235 34,275 Employee Benefits 50,735 53,028 58,131 58,645 67,591 72,318 77,996 84,415 81,588 84,487 Capital Outlay 227,892 148,419 132,843 121,460 128,012 96,133 152,032 114,358 130,585 142,571 Debt Services: Principal Retirement 46,472 66,400 47,148 55,385 48,914 35,514 50,581 53,079 34,398 41,852 Interest 13,863 17,098 17,402 17,457 18,599 18,054 18,878 19,298 21,006 21,878 Police and Fire Prior Service Costs 41,416 Bond Issuance Cost - - 377 707 342 679 389 1,059 1,403 1,070

Total Expenditures 717,189 633,224 607,469 636,164 636,529 575,418 675,963 659,117 668,919 700,801

Excess(Deficiency of Revenues over(under) Expenditures (120,029) (11,920) (25,811) (80,128) (70,969) (10,854) (61,507) (45,427) (38,543) (78,706) Other Financing Sources (Uses) General Obligation Bonds and Notes Issued 142,387 73,623 54,380 58,840 55,695 44,431 61,190 50,500 41,600 64,250 Refunding Bonds Issued 2,130 40,470 6,087 52,005 5,080 Payment to Refunded Bonds Escrow Agent (2,130) (40,292) (54,308) (4,800) State Loans Received 2,300 Capital Lease Agreements 9 77 Revenue Bonds Issued 7,270 20,505 9,995 35,280 12,770 Premium on Bonds Issued 413 821 3,213 1,021 720 3,524 1,133 1,279 Discount on Revenue Bonds (70) (554) (31) State Loan 363 5,608 Other Transfers 14,069 Net Operating Interest Income Operating Transfers In 247,061 161,267 76,886 92,337 117,408 39,280 48,532 85,980 130,747 80,441 Operating Transfers(Out) (242,831) (169,601) (97,581) (100,582) (130,097) (43,293) (50,664) (82,030) (127,701) (80,561)

Total Other Financing Sources(Uses) 146,626 79,721 46,976 71,928 46,219 41,617 65,865 67,966 80,505 78,428

Net change in fund balances $ 26,597 $ 67,801 $ 21,165 $ (8,200) $ (24,750) $ 30,763 $ 4,358 $ 22,539 $ 41,962 $ (278)

Debt services as a Percentage of Noncapital Expenditures 20.80% 17.22% 13.68% 14.29% 13.34% 11.32% 13.33% 13.48% 10.55% 11.61% City of Cincinnati Financial Trends Information Schedule 5 Program Revenues by Function (Optional Schedule) Last Eight Fiscal Years (Amounts in Thousands)

Program Revenue 2002 2003 2004 2005 2006 2007 2008 2009

Function/Program Governmental Activities: General Government $ 77,750 $ 94,357 $ 106,815 $ 94,598 $ 100,473 $ 110,447 $ 103,886 $ 110,673 Community Development 46,610 37,877 28,716 32,316 39,478 25,617 25,404 31,580 Parks and Recreation 9,309 10,949 8,958 7,655 10,897 9,832 13,888 9,358 Public Safety 10,032 11,577 12,818 15,997 31,978 17,649 21,909 26,464 Transportation and Engineering 18,027 21,396 16,319 11,232 1,608 253 18,842 19,382 Transit System Enterprise Services 3,926 Public Services 1,106 1,858 2,066 2,326 2,036 2,296 4,968 5,781 Public Health 14,314 14,504 14,037 15,288 14,603 15,890 15,713 19,152

Subtotal governmental activities program revenue 181,074 192,518 189,729 179,412 201,073 181,984 204,610 222,390

Business-type activities Water Works 98,729 96,199 95,940 113,153 106,703 122,429 122,327 125,081 Parking Facilities 7,576 7,891 8,969 8,827 8,218 8,610 8,822 8,868 Convention Center 7,272 6,051 40,613 48,064 29,101 6,209 7,505 5,236 General Aviation 1,774 2,324 2,076 2,051 1,987 1,983 2,103 2,191 Municipal Golf 5,966 5,811 6,080 5,949 7,429 6,511 6,776 6,458 Stormwater Management 7,335 7,357 7,242 7,063 7,230 8,725 9,377 8,756

Subtotal business-type activities program revenues 128,652 125,633 160,920 185,107 160,668 154,467 156,910 156,590 Total primary government program revenues $ 309,726 $ 318,151 $ 350,649 $ 364,519 $ 361,741 $ 336,451 $ 361,520 $ 378,980

400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 - 2002 2003 2004 2005 2006 2007 2008 2009

Revenue from Govt Activities Revenue from Business Activities

230 City of Cincinnati Financial Trends Information Schedule 6 Total Revenue by Source, Governmental Funds Last Ten Fiscal Years (Amounts in Thousands)

Licenses Use of Inter- Grants Charges Fiscal and Money and Special Governmental and for Current Year Taxes Permits Property Assessments Revenues Subsidies Services Misc Total

2000 314,404 8,975 43,468 3,425 65,333 125,964 25,039 10,552 597,160 2001 317,263 9,647 90,005 3,300 70,092 98,358 25,357 7,282 621,304 2002 317,356 9,483 69,724 3,987 73,332 65,408 36,674 5,718 581,682 2003 331,539 9,331 37,509 3,762 75,209 63,202 24,006 11,478 556,036 2004 339,750 9,844 49,532 3,918 72,095 49,276 26,483 14,662 565,560 2005 357,636 10,449 37,413 4,183 75,976 37,006 27,441 14,460 564,564 2006 384,108 10,917 46,741 4,048 67,800 63,955 29,979 6,908 614,456 2007 392,302 11,516 52,347 4,257 69,001 46,235 31,448 6,584 613,690 2008 398,520 11,302 45,223 4,327 77,737 55,197 32,326 5,744 630,376 2009 386,846 12,045 41,409 4,383 71,514 58,616 34,066 13,216 622,095

Change

231 2000-2009 23.0% 34.2% -4.7% 28.0% 9.5% -53.5% 36.1% 25.2% 4.2%

City of Cincinnati Tax Revenues by Source, Governmental Funds Last Ten Fiscal Years Governmental Revenue 2009 (Amounts in Thousands) 4,383 71,514 41,409 58,616

Fiscal Income Property Admissions Occupancy Tax 12,045 34,066 Year Tax Tax Tax Tax Revenue 13,216

2000 249,174 61,895 3,335 314,404 2001 251,824 62,190 3,249 317,263 386,846 2002 251,694 62,216 3,446 317,356 2003 258,936 67,079 4,075 1,449 331,539 2004 267,331 66,694 3,915 1,810 339,750 Taxes Licenses and Permits 2005 285,116 66,956 3,673 1,891 357,636 Use of Money and Property Use of Special Assessments 2006 298,603 79,138 4,493 1,874 384,108 Inter- Governmental Revenues Grants and Subsidies 2007 311,327 74,534 4,310 2,131 392,302 2008 317,532 74,196 4,570 2,222 398,520 Charges for Current Services Misc 2009 303,685 77,250 4,027 1,884 386,846

Change 2000-2009 21.9% 24.8% 20.7% -0.4% 23.0% City of Cincinnati Revenue Capacity Schedule 1 Income Tax Revenue Base and Collections Cash Basis Last Ten Fiscal Years (Amounts in Thousands)

Tax % % % Year Individual Total Business Total Withholding Total

2000 7,125 2.8% 32,606 12.7% 217,183 84.5% 2001 16,195 6.1% 22,939 8.6% 226,358 85.3% 2002 14,295 5.5% 24,517 9.4% 223,295 85.2% 2003 14,654 5.4% 25,676 9.5% 228,875 85.0% 2004 15,046 5.5% 25,080 9.2% 233,142 85.3% 2005 16,226 5.5% 38,407 13.0% 240,200 81.5% 2006 17,984 5.7% 46,714 14.8% 251,446 79.5% 2007 16,206 5.1% 44,812 14.0% 258,136 80.9% 2008 17,414 5.2% 51,676 15.5% 264,806 79.3% 2009 16,789 5.3% 43,743 13.8% 257,088 80.9%

100%

80%

60%

40%

20%

0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Withholdings Business Individual

Note: 1. In the year 2000 sole proprietor income is included in business income. 2. The income tax rate is 2.1%. Source: Cincinnati Income Tax Division

232 City of Cincinnati Revenue Capacity Schedule 2 Income Tax Revenues Last Ten Fiscal Years (Amounts in Thousands)

Non GAAP Budgetary Basis Permanent % General Transit Infrastructure Improvement Inc(Dec) Year Fund Fund Fund Fund Total PriorYr

2000 183,035 35,426 11,809 17,713 247,983 0.19% 2001 188,598 36,503 12,168 18,251 255,520 3.04% 2002 185,259 35,856 11,952 17,928 250,995 -1.77% 2003 187,993 36,802 12,267 20,550 257,612 2.64% 2004 193,411 37,434 12,478 18,717 262,040 1.72% 2005 210,536 40,749 13,583 20,375 285,243 8.85% 2006 219,000 43,149 14,383 25,512 302,044 5.89% 2007 225,008 43,840 14,614 23,421 306,883 1.60% 2008 231,758 45,821 15,274 27,898 320,751 4.52% 2009 223,800 43,316 14,439 21,658 303,213 -5.47%

GAAP Basis Permanent % General Transit Infrastructure Improvement Inc(Dec) Year Fund Fund Fund Fund Total PriorYr

2000 183,905 35,594 11,865 17,810 249,174 0.54% 2001 185,508 35,904 11,968 18,444 251,824 1.06% 2002 186,137 36,026 12,009 17,522 251,694 -0.05% 2003 188,971 36,991 12,330 20,644 258,936 2.88% 2004 197,616 38,248 12,750 18,717 267,331 3.24% 2005 210,415 40,726 13,575 20,364 285,080 6.64% 2006 216,323 42,631 14,210 25,439 298,603 4.74% 2007 226,704 44,168 14,723 25,732 311,327 4.26% 2008 229,381 45,362 15,121 27,668 317,532 1.99% 2009 222,942 43,150 14,383 23,210 303,685 -4.36%

Tax Revenue Collection by Year GAAP Basis

350,000 300,000 250,000 200,000 150,000 100,000 50,000 - 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

233 City of Cincinnati Revenue Capacity Schedule 3 Assessed Valuations and Estimated True Values Last Ten Years Assessed Valuations Tangible Direct Public Utility Personal Tax Year Real Property Property Property Total Rate 2000 4,363,343,290 400,519,090 674,101,770 5,437,964,150 10.90 2001 4,363,447,780 377,645,690 687,613,910 5,428,707,380 10.76 2002 4,379,262,050 304,549,100 644,918,170 5,328,729,320 10.76 2003 4,871,308,460 319,863,560 535,538,450 5,726,710,470 10.63 2004 4,930,272,530 323,749,180 536,114,777 5,790,136,487 10.36 2005 4,836,981,760 319,434,990 542,827,280 5,699,244,030 10.34 2006 5,507,516,440 324,806,710 412,447,200 6,244,770,350 10.19 2007 5,522,872,120 312,711,570 337,541,870 6,173,125,560 9.93 2008 5,523,140,570 259,754,620 182,812,120 5,965,707,310 9.89 2009 5,647,647,630 258,279,260 28,684,610 5,934,611,500 9.89 The current assessed valuation for 2009 is computed at approximately the following percentages of estimated true value: real property - 35%; public utilities, tangible personal property machinery and equipment, and inventory - various. For real property, the estimated true values for the last ten years are computed as follows: Estimated Estimated Year True Values Year True Values

2000 $ 12,466,695,114 2005 $ 13,819,947,886 2001 12,466,993,657 2006 15,735,761,257 2002 12,512,177,286 2007 15,779,634,629 2003 13,918,024,171 2008 15,780,401,629 2004 14,086,492,943 2009 16,509,153,786 For public utility property and tangible personal property, the City is not able to calculate estimated true values for the last ten years because the tangible personal property components (machinery and equipment, and business inventory) have been assessed over the years at different percentages.

City of Cincinnati Revenue Capacity Schedule 4 Property Tax Rates - Direct and Overlapping Governments Last Ten Years Residential Commercial Debt Service City School County Total Effective Effective Included in City Year Year Levy Levy Levy Levy Millage Millage and Total Levy 1999 for 2000 10.90 51.94 20.83 83.67 56.98 63.10 5.36 5.71 2000 for 2001 10.76 56.93 19.92 87.61 61.15 67.53 5.36 5.67 2001 for 2002 10.76 57.15 21.47 89.38 62.83 69.32 5.36 5.66 2002 for 2003 10.63 56.25 21.87 88.75 58.94 66.70 5.36 5.65 2003 for 2004 10.36 60.75 21.51 92.62 62.90 70.98 5.36 10.17 2004 for 2005 10.34 60.83 21.06 92.23 64.21 71.87 5.36 10.15 2005 for 2006 10.19 59.77 20.81 90.77 57.61 68.60 5.36 10.14 2006 for 2007 9.93 59.37 20.18 89.48 56.94 67.99 5.36 10.05 2007 for 2008 9.89 59.67 20.56 90.12 57.57 68.69 5.36 10.05 2008 for 2009 9.89 67.95 20.63 98.47 65.70 76.08 5.36 10.50 Note: Rates are expressed as dollars of tax per thousand dollars of taxable valuation. Source: Hamilton County Auditor's Office

234 City of Cincinnati Revenue Capacity Schedule 5 Principal Property Taxpayers Current Year and Nine Years Ago

2009 2000 Percentage Percentage Taxable of Total Taxable of Total Assessed Assessed Assessed Assessed Taxpayer Value Rank Value Value Rank Value

Duke Energy (aka Cinergy) $ 273,503,210 1 4.61% 296,474,370 1 5.45% City of Cincinnati 93,903,310 2 1.58% The Procter and Gamble Co 59,104,370 3 1.00% 112,404,790 2 2.07% Carew Realty Inc 29,263,860 4 0.49% Cincinnati Bell Telephone Inc 27,292,680 5 0.46% 76,617,190 3 1.41% Ohio Teachers Retirement System 24,325,000 6 0.41% 26,775,000 7 0.49% Columbia Development 24,239,670 7 0.41% 27,720,000 6 0.51% Fifth Third Bank 21,799,510 8 0.37% Regency Centers LP 19,619,800 9 0.33% 580 Investor LLC 15,462,840 10 0.26% Emery Realty 30,975,000 4 0.57% Prudential Insurance 28,000,000 5 0.51% Fath Properties Limited 18,803,980 10 0.35% Kroger Company 24,941,570 8 0.46% Fifth Third Center 21,350,000 9 0.39%

Total $ 588,514,250 9.92% 664,061,900 12.21%

Total Assessed Value

Source: Hamilton County Auditors' Office

Note: 1. Assessed Valuation is based on both the personal and real property valuation of the largest property holder in the city. 2. The total assessed valuation figure is the 2009 valuation for 2010 real property tax collections.

235 City of Cincinnati Revenue Capacity Schedule 6 Property Tax Levy and Collections Last Ten Years (Amounts in Thousands)

Percentage Percentage of Current of Total Net Current Collections Prior Year Total Collections Year Tax Levy Collections to Net Levy Collections Collections to Net Levy

2000 59,878 56,588 94.51% 2,282 58,870 98.32% 2001 59,536 56,064 94.17% 2,230 58,294 97.91% 2002 58,201 54,858 94.26% 2,271 57,129 98.16% 2003 62,769 58,366 92.99% 2,580 60,946 97.10% 2004 61,664 56,720 91.98% 2,740 59,460 96.43% 2005 60,536 56,162 92.77% 2,696 58,858 97.23% 2006 65,893 61,046 92.64% 3,279 64,325 97.62% 2007 65,406 59,879 91.55% 3,148 63,027 96.36% 2008 63,909 59,067 92.42% 2,978 62,045 97.08% 2009 65,402 59,898 91.72% 2,956 62,945 96.24%

236 City of Cincinnati Revenue Capacity Schedule 7 Water Works Top Ten Retail Customer Data For The Year Ended December 31, 2009

TOTAL TOTAL CONSUMPTION, CONSUMPTION, PERCENT OF PERCENT OF HUNDREDS OF THOUSANDS TOTAL TOTAL TOTAL RANK NAME OF CUSTOMER CUBIC FEET OF GALLONS CONSUMPTION CHARGES CHARGES 1 University of Cincinnati 690,309 516,351 1.37% $ 788,827 0.72% 2 Cognis Corporation 476,239 356,226 0.94% $ 674,942 0.61%

237 3 Procter and Gamble 454,982 340,326 0.90% $ 649,506 0.59% 4 Children's Hospital 317,624 237,583 0.63% $ 467,296 0.43% 5 Wornick Company 256,970 192,213 0.51% $ 429,228 0.39% 6 Metropolitan Sewer District 250,032 187,024 0.49% $ 333,824 0.30% 7 John Morrell Co 243,740 182,318 0.48% $ 408,075 0.37% 8 Flint Ink 225,138 168,403 0.45% $ 376,084 0.34% 9 Coca Cola Company 218,650 163,550 0.43% $ 292,026 0.27% 10 Cinergy Solutions 196,409 146,914 0.39% $ 328,288 0.30%

Total - Top Ten Retail Customers 3,330,093 2,490,908 6.59% $ 4,748,095 4.32% Total - Top 75 Users 17,303,728 12,943,189 34.23% $ 25,135,317 22.89% Total - System 50,548,152 37,810,018 $ 109,828,326 City of Cincinnati Revenue Capacity Schedule 8 Water Works Historical and Projected Water System Pumpage

System's Maximum Rated Pumpage Daily Pumpage Total Average Day Maximum Day Capacity as % of Year Pumpage (MG's) MGD MGD MGD Capacity

2000 48,747.764 133.2 196.8 255 77.18% 2001 47,047.006 128.9 169.6 255 66.51% 2002 49,679.150 136.1 217.8 261 83.45% 2003 48,574.063 133.1 207.9 261 79.66% 2004 49,005.613 134.3 176.8 261 67.74% 2005 50,246.239 137.7 213.8 255 83.84% 2006 47,990.075 131.5 211.5 260 81.35% 2007 53,410.400 146.3 229.5 260 88.27% 2008 49,566.720 135.4 220.6 260 84.85% 2009 45,554.620 124.8 169.3 260 65.12%

MG - Million Gallons MGD - Million Gallons per Day

City of Cincinnati Revenue Capacity Schedule 9 Water Works Accounts Receivable

Cash Collected During Percentage of Year for Current & Prior Sales Collected Year Net Water Sales Year's Sales

2009 $ 108,648,959 $ 107,855,822 99.27% 2008 110,122,765 109,451,016 99.39% 2007 108,648,659 107,857,042 99.27% 2006 93,746,893 92,171,945 98.32% 2005 93,542,902 92,994,903 99.41% 2004 86,574,584 84,906,679 98.07% 2003 83,270,619 82,523,831 99.10% 2002 82,815,023 82,260,162 99.33% 2001 77,001,567 78,200,650 101.56% 2000 80,820,774 79,806,757 98.75% $ 925,192,745 $ 918,028,807 99.23%

238 City of Cincinnati Debt Capacity Information Schedule 1 Ratios of Outstanding Debt by Type Last Ten Fiscal Years (Amount in Thousands)

General General Total Outstanding % of Per Capita Debt to Fiscal Obligation Obligation Revenue Revenue Capital Outstanding Debt per Personal Net Asset Year Bonds Notes Bonds Notes Loans Leases Debt Capita (Actual) Income Ratio

Governmental Activities

2000 249,716 11,303 12,346 1,153 274,518 828.63 2.7% N/A 2001 265,628 21,300 11,819 4,334 712 303,793 917.00 3.0% 2.39 2002 273,473 21,497 18,522 9,732 171 323,395 976.17 3.1% 2.37 2003 296,530 12,532 38,140 111 347,313 1,048.37 3.2% 2.29 2004 312,447 5,697 35,852 88 354,084 1,068.80 3.1% 2.25 2005 320,278 9,930 33,449 3,000 60 366,717 1,155.52 3.2% 2.24 2006 340,640 6,050 30,595 6,087 28 383,400 1,208.09 3.2% 2.20 2007 352,955 8,268 38,115 7,380 3,374 471 410,563 1,235.70 3.2% 2.10 2008 363,120 12,800 70,825 2,550 3,220 247 452,762 1,361.86 3.5% 1.93 2009 389,680 4,490 80,140 - 3,029 501 477,840 1,437.29 N/A 1.80 239 Business-Type Activities

2000 107,289 9,000 499 116,788 352.52 1.2% N/A 2001 91,157 92,685 271 184,113 555.75 1.8% 3.21 2002 74,967 9,100 89,885 69 174,021 525.28 1.7% 3.65 2003 58,745 24,510 199,310 282,565 852.92 2.6% 2.32 2004 45,158 12,000 192,300 975 250,433 755.93 2.2% 2.87 2005 33,567 7,747 295,645 1,905 338,864 1,067.76 3.0% 2.32 2006 25,170 7,874 284,600 3,114 320,758 1,010.70 2.7% 2.58 2007 17,635 - 346,255 12,868 181 376,939 1,134.50 3.0% 2.23 2008 15,470 - 332,635 12,622 268 360,995 1,085.84 2.8% 2.34 2009 13,155 6,250 415,965 12,190 284 447,844 1,347.07 N/A 1.90

Total Primary Governmental Activiites

2000 357,005 20,303 12,346 - 1,652 391,306 1,181.16 3.9% N/A 2001 356,785 21,300 104,504 4,334 983 487,906 1,472.75 4.7% 2.70 2002 348,440 30,597 108,407 9,732 240 497,416 1,501.45 4.7% 2.87 2003 355,275 37,042 237,450 - 111 629,878 1,901.29 5.9% 2.31 2004 357,605 17,697 228,152 975 88 604,517 1,824.74 5.4% 2.51 2005 353,845 17,677 329,094 3,000 1,905 60 705,581 2,223.28 6.2% 2.28 2006 365,810 13,924 315,195 6,087 3,114 28 704,158 2,218.79 5.9% 2.37 2007 370,590 8,268 384,370 7,380 16,242 652 787,502 2,370.19 6.2% 2.16 2008 378,590 12,800 403,460 2,550 15,842 515 813,757 2,447.70 6.3% 2.11 2009 402,835 10,740 496,105 - 15,219 785 925,684 2,784.36 N/A 1.85 City of Cincinnati Debt Capacity Information Schedule 2 Ratio of Net General Bonded Debt To Assessed Value and Net Bonded Debt Per Capital Last Ten Years Ratio of Net Net Net Bonded Bonded Debt Bonded Debt Population To Assessed Debt per Year (Note 1) Assessed Value (Note 2) Value Capita

2000 152,076,405 5,437,964,150 331,290 2.80% 459 2001 160,794,777 5,428,707,380 331,290 2.96% 485 2002 181,745,936 5,328,729,320 331,290 3.41% 549 2003 204,360,090 5,726,710,470 331,290 3.57% 617 2004 199,851,276 5,790,136,487 331,290 3.45% 603 2005 195,355,794 5,699,244,030 317,361 3.43% 616 2006 196,217,743 6,244,770,350 317,361 3.14% 618 2007 198,642,767 6,173,125,560 332,252 3.22% 598 2008 267,007,624 5,965,707,310 332,458 4.48% 803 2009 274,026,733 5,934,611,500 332,458 4.62% 824

Note 1 - Includes only the net general obligation debt that is tax supported.

Note 2 - The 2000 - 2009 figures are based on Bureau of the Census data.

City of Cincinnati Debt Capacity Information Schedule 3 Computation of Direct and Overlapping Debt December 31, 2009

Assessed Net General Net Tax Valuation Tax Supported Percent Supported (a) Debt Overlapping Overall Debt Direct: City of Cincinnati $ 5,934,611,500 $ 243,178,562 100 % $ 243,178,562

Overlapping: Board of Education - Cincinnati City School District 6,719,083,860 721,671,073 (b) 89 % 642,287,255 Hamilton County 20,235,143,780 111,076,587 (a) 31 % 34,433,742 Subtotal 832,747,660 676,720,997

Total $ 1,075,926,222 $ 919,899,559

(a) Source: Hamilton County Auditor's Office (b) Source: Cincinnati City School District

Total Net Bonded Debt Outstanding at Year End

300,000,000

250,000,000

200,000,000

150,000,000

100,000,000

50,000,000

- 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

240 City of Cincinnati Debt Capacity Information Schedule 4 Legal Debt Margin December 31

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Overall Debt Limitation - 10-1/2 % of Assessed Valuation $ 570,986,236 $ 570,014,275 $ 559,516,579 $ 601,304,599 $ 607,964,331 $ 598,420,623 $ 657,615,564 $ 648,178,184 $ 626,399,268 $ 623,134,208

Net Debt Within 10-1/2% Limitation 164,535,000 175,220,000 195,400,000 221,670,000 220,560,000 217,670,000 247,190,000 222,868,000 236,495,000 226,635,000

Legal Debt Margin Within 10-1/2% Limitation $ 406,451,236 $ 394,794,275 $ 364,116,579 $ 379,634,599 $ 387,404,331 $ 380,750,623 $ 410,425,564 $ 425,310,184 $ 389,904,268 $ 396,499,208

Net Debt Percentage of 10 1/2 % Limitation 28.82% 30.74% 34.92% 36.86% 36.28% 36.37% 37.59% 34.38% 37.75% 36.37%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Unvoted Debt Limitation - 5-1/2% of Assessed Valuation $ 299,088,028 $ 298,578,906 $ 293,080,113 $ 314,969,076 $ 318,457,507 $ 313,458,422 $ 344,465,295 $ 339,521,906 $ 328,113,902 $ 326,403,633

Net Debt Within 5-1/2% Limitation 164,535,000 175,220,000 195,400,000 221,670,000 220,560,000 217,670,000 247,190,000 222,868,000 236,495,000 226,635,000

Legal Debt Margin Within 5-1/2% Limitation $ 134,553,028 $ 123,358,906 $ 97,680,113 $ 93,299,076 $ 97,897,507 $ 95,788,422 $ 97,275,295 $ 116,653,906 $ 91,618,902 $ 99,768,633 241

Net Debt Percentage of 5 1/2 % Limitation 55.01% 58.68% 66.67% 70.38% 69.26% 69.44% 71.76% 65.64% 72.08% 69.43%

400,000,000 350,000,000 300,000,000 250,000,000 200,000,000 150,000,000 100,000,000 50,000,000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Outstanding Debt Legal Debt Margin - Unvoted Debt City of Cincinnati Debt Service Capacity Schedule 5 Revenue Bonds Debt Service Coverage Last Ten Fiscal Years

Economic Development Financing Bonds Water Works Bonds Fiscal Year Payment in Lieu Debt Service Water Works Debt Service of Taxes Principal Interest Total Coverage Revenue Principal Interest Total Coverage

2000 1,423,318 368,000 992,001 1,360,001 1.05 2001 1,884,766 592,000 959,174 1,551,174 1.22 2002 1,967,377 567,000 967,075 1,534,075 1.28 $ 93,034,000 $ 2,800,000 $ 4,759,000 $ 7,559,000 4.77 2003 2,651,448 887,000 1,160,626 2,047,626 1.29 93,597,000 2,935,000 4,621,000 7,556,000 4.56 2004 2,651,448 887,000 1,160,626 2,047,626 1.29 96,651,000 7,010,000 9,367,000 16,377,000 2.15 2005 4,848,086 2,288,000 1,995,000 4,283,000 1.13 105,797,000 7,240,000 11,174,000 18,414,000 2.18 2006 4,840,444 2,854,000 1,915,905 4,769,905 1.01 110,858,000 11,045,000 12,721,000 23,766,000 1.91 2007 4,796,765 2,475,000 1,782,231 4,257,231 1.13 127,995,000 11,475,000 13,082,000 24,557,000 2.24 2008 6,486,865 2,955,000 2,209,510 5,164,510 1.26 126,839,000 13,620,000 14,840,000 28,460,000 1.79 2009 9,953,193 3,070,000 2,050,209 5,120,209 1.94 120,504,000 14,000,000 15,797,000 29,797,000 1.46

Includes:

242 Urban Renewal Revenue Bonds, Series 1990A - One Gateway Project (165) Economic Development Revenue Bonds, Series 1996 - Cincinnati Development Group LLC - Fountain Square West Project (156) Economic Development Revenue Bonds, Series 1998 - Convention Place Mall Project - RSJJ Investments Limited (157) Economic Development Revenue Bonds, Series 2002 - Saks Fifth Avenue Inc. & Race Street Development LTD (158) Economic Development Revenue Bonds, Series 2003 - Convergys Corporation Project (159) City of Cincinnati Debt Capacity Schedule 6 Water Works Historical Financial Operations (Amounts in Thousands)

2001 2002 2003 2004 2005 2006 2007 2008 2009 Operating Revenue Total Operating Revenue $81,542 $90,124 $91,556 $94,706 $102,272 $105,059 $121,244 $121,508 $117,441

Operating Expense: Personal Services 29,237 31,292 31,741 34,703 36,805 37,600 39,575 41,041 42,827 Contractual Services 7,491 8,082 8,692 8,555 8,963 7,328 8,530 9,660 9,249 Maintenance and Repair 2,836 2,575 3,006 3,170 3,223 3,135 4,550 4,115 3,704 Materials and Supplies 5,917 5,992 6,256 5,389 5,651 6,105 7,451 7,869 8,475 Utilities 6,802 7,918 8,007 7,911 9,270 9,752 11,639 11,287 10,821 Insurance 181 230 264 205 234 201 169 114 117 Taxes 16 - 1 1 46 48 2 0 1 Rent 306 394 656 989 931 1,037 823 1,057 1,256 Other 190 470 482 507 470 412 354 823 620 Depreciation and Amortization Expense 12,152 15,630 15,597 16,950 19,516 21,471 21,934 22,705 24,161 Amortization Mason Agreement - 48 63 66 - 72 76 0 243 60 Bad Debt Expense 175 ------

Total Operating Expense 65,303 72,631 74,762 78,443 85,175 87,089 95,099 98,747 101,231

Operating Income $ 16,239 $ 17,493 $ 16,794 $ 16,263 $ 17,097 $ 17,970 $ 26,145 $ 22,761 $ 16,210

Non-Operating Revenue (Expenses): Capital Contribution $8,475 $10,537 $8,661 $5,063 $14,464 $5,646 $4,935 $3,099 $9,704 Gain (Loss) on Disposal of Fixed Assets (516) (24) (323) (828) (351) (628) (52) (1,338) (1,621) Transfers In 236 ------Interest Revenue 8,521 2,910 2,041 1,945 3,525 5,799 6,751 5,272 2,403 Build America Bond Subsidy 553 Interest Expense (7,416) (4,749) (8,234) (7,164) (12,155) (11,113) (12,359) (13,997) (13,525)

Total Non-Operating Revenue (Expense): 9,300 8,674 2,145 (984) 5,483 (296) (725) (6,964) (2,486)

Net Income $25,539 $26,167 $18,939 $15,279 $22,580 $17,674 $25,420 $15,797 $13,724 City of Cincinnati Debt Capacity Schedule 7 Water Works Projected Operating Results

Description 2010 2011 2012 2013 $ $ $ $ Metered Water Sales Revenue Under Existing Rates 104,209,000 106,092,300 108,891,300 113,243,660 Indicated Revenue Increases (a) Revenue Month - Year Increase ______January 2009 5.90% 6,005,000 6,005,000 6,005,000 6,005,000 January 2010 3.00% 2,873,400 3,264,200 3,264,200 3,264,200 January 2011 6.00% 6,036,000 6,831,700 6,831,700 January 2012 5.00% 5,433,600 6,114,100 January 2013 5.00% 5,814,700 Total Increased Revenue 8,878,400 15,305,200 21,534,500 28,029,700 ______Total Metered Water Sales Revenue 113,087,400 121,397,500 130,425,800 141,273,360 Other Revenue 2,586,500 2,664,100 2,664,100 2,744,000 Billing Services 7,870,100 7,991,900 8,142,500 8,295,500 Construction Reimbursement Charges 342,700 342,700 342,700 342,700 Interest Income (b) 1,837,800 1,980,900 2,162,500 2,417,900 Direct Federal Cash Payment for Build America Bonds 1,701,215 1,701,215 1,701,215 1,701,215 ______Total Revenue 127,425,715 136,078,315 145,438,815 156,774,675 Operating & Maintenance Expense (c) (d) 74,869,800 79,118,500 82,133,900 85,695,100 ______Net Revenue Available for Debt Service 52,555,915 56,959,815 63,304,915 71,079,575

Series 2001 Revenue Bond Debt Service 4,361,945 1,566,000 0 0 Series 2003 Revenue Bond Debt Service 4,964,223 4,962,598 33,948 33,948 Series 2005A Revenue Bond Debt Service 5,948,656 5,852,406 5,950,688 5,854,188 Series 2007A Revenue Bond Debt Service 6,096,150 6,096,750 10,137,150 15,195,750 Series 2007B Revenue Bond Debt Service 5,161,563 5,165,323 5,162,123 5,165,348 Series 2009 Revenue Bond Debt Service 7,542,614 10,337,664 12,788,714 7,728,564 Future Senior Lien Revenue Bond Debt Service (e) 0 2,386,358 5,545,900 8,625,503 ______Total Senior Lien Revenue Bond Debt Service 34,075,150 36,367,098 39,618,522 42,603,300

Series 2005B Revenue Bond Conversion Debt Service 1,500,000 1,500,000 1,500,000 1,500,000 ______Total Junior Lien Revenue Bond Debt Service 1,500,000 1,500,000 1,500,000 1,500,000

Subordinate General Obligation Bond Debt Service (f) 2,411,600 2,327,600 2,243,600 2,159,600 ______Total Junior Lien Revenue Bond Debt Service 2,411,600 2,327,600 2,243,600 2,159,600

State of Ohio Issue 2 Money ($1M/20Yrs/0%)-2003 50,000 50,000 50,000 50,000 State of Ohio Issue 2 Money ($980K/20Yrs/0%)-2004 49,000 49,000 49,000 49,000 State of Ohio Issue 2 Money ($1.15M/20Yrs/0%)-2005 57,500 57,500 57,500 57,500 Ohio EPA Water Supply Revolving Loan ($1.7M/20Yrs/3.25%)-2006 116,096 116,096 116,096 116,096 Ohio EPA Water Supply Revolving Loan ($4M/20Yrs/3.25%)-2006 271,524 271,524 271,524 271,524 ______Other Financing Requirements 544,120 544,120 544,120 544,120

Revenues Available for Transfer to Water System Reserve Fund 14,025,044 16,220,996 19,398,673 24,272,555

Working Capital Balance

Prior Year Revenue Fund Working Capital Balance 23,684,775 25,741,044 27,450,996 31,266,673 Revenue Transfer To Water System Reserve Fund 11,968,775 14,511,044 15,582,996 18,946,673 Revenues Available for Transfer 14,025,044 16,220,996 19,398,673 24,272,555 ______End of Year Working Capital Balance 25,741,044 27,450,996 31,266,673 36,592,555 Working Capital Balance Requirement (g) 11,230,000 11,868,000 12,320,000 12,854,000

Revenues Transferred the Next Fiscal Year 14,511,044 15,582,996 18,946,673 23,738,555

Water System Reserve Fund Beginning of Year Balance 24,703,669 23,213,044 22,867,688 19,470,485 Deposits 11,968,775 14,511,044 15,582,996 18,946,673 Transfer to Water Works Capital Improvement Fund 13,459,400 14,856,400 18,980,200 19,535,400 ______End of Year Balance 23,213,044 22,867,688 19,470,485 18,881,758

Senior Lien Revenue Bond Debt Service Coverage 154% 157% 160% 167% Total Bond Debt Service Coverage 138% 142% 146% 154%

(a) Reflects the effect of a 12.5% bill proration and billing lag on the level of revenues to be received in the first year of each revenue adjustment. (b) Does not include interest earnings from construction fund which will be used to fund future projects and reduce additional borrowing. (c) Inflation factors used in calculations are 2.6-6.0% increases for Non-Personnel Costs, 3% increases for Personnel Costs and 3-10% for Other Fringes

(d) Annual contributions to the City Retirement System are assumed to increase from the current 17% of Personnel Costs to 25% beginning in 2011. No increase in contributions has been approved as of yet by City Council. (e) Estimated Future Issues assuming revenue bonds (25 years bonds) as follows:

Proceeds Debt Service Reserve/ Year Required Bond Issuance Costs Total Issue Interest Rate

2011 $68.088MM $6.292MM $74.380MM 5.50% 2013 $83.878MM $7.937MM $91.815MM 5.75% 2015 $73.668MM $7.132MM $80.800MM 6.00% (f) General Obligation Bond debt issued for Water System Improvements. Final GO Payment in 2014. (g) It has been the policy of the Utility to maintain a working capital reserve equal to 15% of the prior fiscal year's O&M Expenses.

Completed 4/19/2010 244 City of Cincinnati Debt Capacity Schedule 8 Water Works Senior Bonds and Senior Subordinated Debt Service Requirements Total Senior Bonds Debt Service Debt Service and Build America Bonds Debt Service Debt Service Debt Service Debt Service Debt Service Debt Service Total Senior Bonds Debt Service Debt Service Total Subordinated Subordinated Bonds Year Series 2009B* Series 2009A Series 2007B Series 2007A Series 2005A Series 2003 Series 2001 Debt Service Series 2005B GO Debt Debt Service Debt Service

2010 3,159,398.90 2,682,000.00 5,161,563.00 6,096,150.00 5,948,656.00 4,964,223.00 4,361,945.00 32,373,935.90 1,500,000.00 2,411,600.00 3,911,600.00 36,285,535.90 2011 3,159,398.90 5,477,050.00 5,165,323.00 6,096,750.00 5,852,406.00 4,962,598.00 1,566,000.00 32,279,525.90 1,500,000.00 2,327,600.00 3,827,600.00 36,107,125.90 2012 3,159,398.90 7,928,100.00 5,162,123.00 10,137,150.00 5,950,688.00 33,948.00 32,371,407.90 1,500,000.00 2,243,600.00 3,743,600.00 36,115,007.90 2013 3,159,398.90 2,867,950.00 5,165,348.00 15,195,750.00 5,854,188.00 33,948.00 32,276,582.90 1,500,000.00 2,159,600.00 3,659,600.00 35,936,182.90 2014 3,159,398.90 2,508,550.00 5,164,313.00 15,551,500.00 5,946,188.00 33,948.00 32,363,897.90 1,500,000.00 1,875,600.00 3,375,600.00 35,739,497.90 2015 3,159,398.90 10,532,550.00 5,164,438.00 15,632,650.00 711,938.00 33,948.00 35,234,922.90 1,500,000.00 1,500,000.00 36,734,922.90 2016 3,159,398.90 10,925,150.00 5,162,400.00 15,148,650.00 711,938.00 33,948.00 35,141,484.90 1,500,000.00 1,500,000.00 36,641,484.90 2017 3,159,398.90 10,293,750.00 5,165,600.00 15,875,250.00 711,938.00 33,948.00 35,239,884.90 1,500,000.00 1,500,000.00 36,739,884.90 2018 3,159,398.90 10,193,500.00 5,165,000.00 15,876,000.00 711,938.00 33,948.00 35,139,784.90 1,500,000.00 1,500,000.00 36,639,784.90 2019 3,159,398.90 10,291,250.00 5,160,750.00 15,876,500.00 711,938.00 33,948.00 35,233,784.90 1,500,000.00 1,500,000.00 36,733,784.90 2020 3,159,398.90 3,759,000.00 5,165,500.00 15,871,875.00 7,291,938.00 33,948.00 35,281,659.90 1,500,000.00 1,500,000.00 36,781,659.90 2021 6,884,398.90 5,163,500.00 15,875,475.00 7,382,938.00 33,948.00 35,340,259.90 1,500,000.00 1,500,000.00 36,840,259.90 2022 6,953,893.52 5,164,750.00 7,855,725.00 807,938.00 493,948.00 21,276,254.52 7,275,000.00 7,275,000.00 28,551,254.52 2023 7,026,381.16 5,163,750.00 8,067,400.00 287,788.00 20,545,319.16 8,961,250.00 8,961,250.00 29,506,569.16 2024 7,106,511.42 5,165,250.00 12,271,761.42 8,898,750.00 8,898,750.00 21,170,511.42 2025 7,188,758.82 5,163,750.00 12,352,508.82 8,820,000.00 8,820,000.00 21,172,508.82 2026 7,290,874.52 5,164,000.00 12,454,874.52 12,454,874.52 2027 7,400,606.98 5,165,500.00 12,566,106.98 12,566,106.98 2028 7,517,116.70 5,162,750.00 12,679,866.70 12,679,866.70 2029 7,639,564.12 5,165,500.00 12,805,064.12 12,805,064.12 2030 7,772,109.70 5,163,000.00 12,935,109.70 12,935,109.70 2031 7,908,704.02 5,165,000.00 13,073,704.02 13,073,704.02 245 2032 8,058,507.56 5,160,750.00 13,219,257.56 13,219,257.56 2033 8,215,260.96 8,215,260.96 8,215,260.96 2034 8,387,914.84 8,387,914.84 8,387,914.84

$ 140,103,991.12 $77,458,850.00 $118,769,858.00 $179,156,825.00 $ 48,594,630.00 $11,048,037.00 $5,927,945.00 $ 581,060,136.12 $51,955,000.00 $11,018,000.00 $62,973,000.00 $ 644,033,136.12

*Represents gross debt on Build America Bonds - Subsidy equal to 35% of interest paid treated as revenue for coverage calculations. City of Cincinnati, Ohio Demographic and Economic Information Schedule 1 Population Statistics Last Ten Calendar Years

Population Civilian Labor Force Estimates

Cincinnati Hamilton United Cincinnati Hamilton % Year United States Ohio MSA County States Ohio MSA County Cincinnati Unemployed

2000 282,171,936 11,363,719 2,014,615 844,290 142,583,000 5,807,000 1,045,800 428,800 160,400 3.4 2001 285,039,803 11,391,298 2,035,394 849,297 143,734,000 5,825,600 1,049,300 425,600 159,400 4.0 2002 287,726,647 11,410,582 2,049,629 848,120 144,863,000 5,838,100 1,057,000 423,900 159,900 4.9 2003 290,210,914 11,430,306 2,065,531 847,161 146,510,000 5,860,000 1,071,300 423,100 156,300 5.1 2004 292,892,127 11,445,095 2,082,796 846,254 147,401,000 5,862,800 1,081,800 420,400 154,900 5.1 2005 295,753,151 11,475,262 2,102,422 847,182 149,320,000 5,889,500 1,094,500 419,000 153,000 5.4 2006 298,593,212 11,492,495 2,122,711 847,656 151,428,000 5,942,100 1,109,600 425,700 164,100 5.2 2007 301,579,895 11,520,815 2,148,315 855,928 153,124,000 5,976,700 1,121,300 436,400 164,300 5.0 2008 304,374,846 11,528,072 2,158,643 853,508 154,287,000 5,971,900 1,127,500 438,200 164,800 5.8 2009 N/A N/A N/A N/A N/A N/A N/A N/A N/A 9.3 246

Personal Income (In Millions) Per Capita Personal Income

United Cincinnati Hamilton United Cincinnati Hamilton Year States Ohio MSA County States Ohio MSA County

2000 8,554,392 326,074 62,649 28,823 29,847 28,207 30,474 33,554 2001 8,878,830 333,539 64,885 29,798 30,582 28,585 31,008 34,307 2002 9,054,781 340,664 66,798 30,727 30,838 29,197 31,766 35,385 2003 9,369,072 350,892 68,834 31,468 31,530 29,846 32,303 36,069 2004 9,928,790 361,854 72,512 33,147 33,157 30,765 33,933 38,258 2005 10,476,669 372,132 75,148 33,918 35,424 32,429 35,774 40,037 2006 11,256,516 390,645 79,456 35,914 37,698 33,991 37,431 42,369 2007 11,879,836 405,236 82,567 36,835 39,392 35,174 38,434 43,035 2008 12,225,589 413,732 84,329 37,484 40,166 35,889 39,066 43,918 2009 N/A N/A N/A N/A N/A N/A N/A N/A

Source: Ohio Department of Job and Family Services (lmi.state.oh.us/) US Dept of Commerce, Bureau of Economic Commerce (www.bea.gov) N/A = Not Available City of Cincinnati Demographic and Economic Information Schedule 2 Ten Largest Employees In Cincinnati Primary Metropolitan Statistical Area Current Year and Nine Years Ago

2009 2000

Number Percentage Number Percentage of of Total of of Total Employer Employees Employment Employees Employment

The Kroger Co 17,000 1.68% 16,200 1 1.83% University of Cincinnati 15,340 1.52% 13,600 4 1.53% The Procter and Gamble Co 13,000 1.29% 14,200 2 1.60% Children's Hospital Medical Center 11,385 1.13% Health Alliance 10,000 0.99% 13,400 5 1.51% Tri-Health Inc 9,875 0.98% 7,500 7 0.85% Archdiocese of Cincinnati 8,000 0.79% Wal-mart Stores 7,375 0.73% Fifth Third Bank 7,219 0.71% Mercy Health Partners 7,316 0.72% General Electric 7,500 6 0.85% Cincinnati Public Schools 7,400 8 0.83% U S Government 13,600 3 1.53% American Financial 6,000 9 0.68% Hamilton County 6,000 10 0.68%

Total 106,510 10.54% 105,400 11.89%

Total Metropolitan Statistical Area 1,010,200 886,700

Source: Business Courier 2010 Winter Book of Business Lists

247 City of Cincinnati, Ohio Demographic and Economic Information Schedule 3 Construction and Property Values

New Residential New Non-Residential Total Construction (1) Construction (1) Construction (1) Number Estimated Number Estimated Number Estimated of Cost of Cost of Cost Year Permits (in thousands) Permits (in thousands) Permits (in thousands)

2000 169 30,170 567 250,681 10,483 540,208 2001 120 24,712 70 136,958 9,206 570,930 2002 198 44,323 65 52,432 8,726 559,529 2003 154 36,200 78 67,496 8,146 333,396 2004 187 26,488 55 97,719 7,950 486,905 2005 237 50,032 51 119,405 8,396 510,003 2006 231 75,536 53 93,812 8,545 547,934 2007 150 36,540 55 124,961 8,780 487,176 2008 72 13,252 66 243,388 8,429 555,648 2009 44 10,642 60 246,896 8,139 603,417

Property Value (2) Residential Non-Residential Year (in thousands) (in thousands)

2000 7,165,094 5,301,602 2001 7,191,011 5,275,983 2002 7,190,165 5,322,012 2003 8,135,933 6,695,987 2004 8,154,379 6,857,111 2005 8,191,224 6,541,396 2006 9,890,166 6,773,615 2007 9,880,248 5,899,386 2008 9,944,823 5,835,579 2009 10,091,512 6,044,623

Source: (1) The City's Department of City Plannings' records (2) Values obtained from the Hamilton County Auditor's Office

248 City of Cincinnati, Ohio DemographicDemographic and Economic Information Schedule 4 Salaries of Principal Officials

Position Salary

MayorMayor $131,904

Councilmember $65,952

City Manager $223,927

Commissioner of Health $1174,239941 - $1585,273171

Deputy City Manager $11114,7,239941 - $15$155,1718,273

City Solicitor $11114,9417,239 - $15$155,1718,273

Various Department Directors $10098,,374341--$1$13235,,805460

MAYOR and CITY COUNCIL

The mayormayor is elected for a four-year term by the voters of Cincinnati. The legislature of the City is a nine-member council elected at large on a partisan basis for two-year terms. The vice--mayormayor is chosen by the mayormayor from the councilmembers. AA list list of of the the council council incumbents incumbents and and the the term term each each is presentlyis presentlyservingserving appears appears on page on page (xiii). (xiii). The mayorThe may selectsor selects the city the manager,city manager, but the but may the or’smay nomineeor’s nominee must must be approved be approved by a bymajoritya majorityof theof council. the council. The Thecity managercity manager appoints appoints the deputy the deputycity managercity manager and theand department the departm directors.ent directors.

City of Cincinnati, Ohio DemographicDemographic and Economic Information Schedule 5 Surety Bond Coverage

A faithful performance blanket bond coverage ofof $5,000,000$5,000,000 isis maintainedmaintained forfor allall CityCity employees.employees.

249 Cincinnati-Middletown MSA Demographic and Economic Information Schedule 6 Annual Employment Average by Industry (in thousands)

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Goods-Producing Industries 198.3 190.5 179.2 176.6 176.5 175.7 174.2 172.1 160.8 147.7 Natural Resources, Mining and Construction 50.6 51.1 49.2 49.6 52.4 52.4 52.6 50.6 45.0 44.0 Construction of Buildings 11.5 11.0 11.3 12.3 12.7 12.8 12.6 12.1 9.7 9.4 Specialty Trade Contractors 33.1 32.6 31.5 31.5 34.0 33.7 34.2 32.6 29.6 26.6

Manufacturing 147.7 139.4 130.0 127.0 124.2 123.3 121.7 121.5 115.8 103.7 Durable Goods 87.7 82.2 75.4 72.7 71.9 71.9 71.8 72.1 69.2 57.8 Primary Metals 9.0 8.6 7.9 8.0 8.0 7.5 6.5 6.8 6.2 4.8 Transportation Equipment 19.9 20.1 18.2 17.1 17.1 18.2 19.5 19.8 19.1 17.1 Motor Vehicle Parts 7.8 8.4 8.6 8.0 7.8 8.4 8.8 8.7 7.8 6.6 Aerospace Products and Parts 9.8 9.9 8.9 8.3 8.3 8.7 9.4 9.5 9.8 9.7 Nondurable Goods 60.0 57.2 54.7 54.4 52.3 51.4 49.9 49.4 46.6 45.9 Chemical Manufacturing 13.4 13.0 12.4 12.4 11.0 11.1 11.2 11.1 11.2 10.9

Service-Providing Industries 819.1 821.0 829.5 839.5 848.8 859.6 864.2 873.0 877.4 858.6 Trade, Transportation, and Utilities 218.1 216.1 213.7 210.9 210.3 211.0 209.6 212.8 215.4 205.3 Wholesale Trade 59.3 58.8 58.3 57.2 56.7 58.0 59.2 61.0 60.4 55.4 Merchant Wholesalers, Durable Goods 28.1 27.5 26.8 26.8 26.9 27.8 28.7 28.8 28.3 26.0 Merchant Wholesalers, Non-Durable Goods 21.6 21.8 22.1 22.3 22.3 22.5 23.2 23.8 23.6 23.6 Retail Trade 115.6 115.0 112.6 110.6 110.8 109.4 109.2 109.7 111.5 109.5 Food and Beverage Stores 19.8 20.3 19.8 20.8 20.3 20.3 20.8 21.4 21.8 22.0 Grocery Stores 17.1 17.6 17.2 17.5 17.2 17.4 17.9 18.6 18.9 18.7 Health and Personal Care Stores 7.6 7.4 7.4 7.8 7.6 7.4 7.3 7.4 7.3 7.1 Clothing and Clothing Accessories Stores 7.6 7.4 7.8 8.4 9.3 9.3 9.4 8.8 9.7 8.7 General Merchandise Stores 25.5 23.8 22.1 22.4 22.1 21.6 22.0 22.7 25.0 23.6 Transportation, Warehousing and Utilities 43.1 42.3 42.8 43.1 42.8 43.6 41.1 42.0 43.5 40.4 Transportation and Warehousing 38.5 37.1 37.6 39.0 39.6 40.4 38.0 38.9 39.8 38.1 Air Transportation 9.5 8.9 9.8 10.3 10.4 10.0 8.6 8.0 7.0 6.2 Information 20.3 19.4 17.8 16.2 16.0 15.8 15.7 15.6 15.3 14.3 Telecommunications 7.2 6.9 6.1 5.6 5.7 5.4 N/A N/A N/A N/A Financial Activities 59.1 60.9 64.1 66.0 65.0 65.6 65.3 65.6 64.4 62.1 Finance and Insurance 44.2 46.1 48.9 51.5 50.8 51.5 51.6 52.3 52.2 49.2 Credit Intermediation and Related Activities 17.8 18.5 20.1 21.3 21.1 21.5 20.8 20.5 21.3 20.1 Insurance Carriers and Related Activities 20.2 20.4 21.8 23.5 22.9 22.9 23.2 23.8 24.2 23.7 Professional and Business Services 139.1 138.9 139.6 144.1 147.0 152.3 156.0 154.8 155.6 154.0 Professional and Technical Services 50.8 50.5 49.7 50.9 50.7 52.2 53.6 54.7 56.0 55.2 Management of Companies and Enterprises 29.8 29.6 29.9 30.8 30.7 31.6 32.7 33.5 36.6 36.4 Administrative, Support, and Waste Services 58.6 58.8 60.0 62.4 65.6 68.5 69.7 66.7 63.0 62.4 Employment Services 28.5 27.6 26.9 29.8 33.3 35.4 36.4 34.1 30.2 28.2 Services to Buildings and Dwellings 13.2 13.0 12.8 13.1 12.8 13.4 13.4 13.6 12.5 11.9 Educational and Health Services 119.6 121.0 124.7 127.2 131.1 134.6 137.4 141.3 147.3 148.6 Educational Services 11.9 11.6 11.9 12.8 13.7 14.2 14.4 14.6 15.8 15.8 Health Care and Social Assistance 107.7 109.5 112.7 114.4 117.4 120.4 123.1 126.7 131.5 132.8 Hospitals 35.0 35.4 35.9 37.2 38.3 39.4 40.7 41.3 44.1 46.5 Leisure and Hospitality 96.0 96.1 98.2 99.9 103.2 105.4 105.2 106.9 101.9 99.7 Arts, Entertainment and Recreation 18.7 17.7 17.9 18.3 18.9 18.9 18.3 18.8 16.4 15.9 Accommodation and Food Services 77.3 78.5 80.3 81.6 84.3 86.6 86.9 88.0 85.5 83.8 Other Services 41.2 40.5 40.9 42.1 42.9 42.8 42.5 43.2 43.1 42.0 Government 125.9 128.1 130.6 133.1 133.2 132.2 132.5 132.9 134.4 132.6 Federal Government 18.0 17.9 18.4 17.8 17.6 17.6 17.7 17.4 16.9 16.5 State Government 25.5 25.8 26.0 26.7 27.1 27.4 27.1 27.5 29.0 29.4 State Government Education 20.3 20.5 21.0 21.5 21.9 22.2 21.9 22.3 24.0 24.6 Local Government 82.4 84.4 86.2 88.6 88.4 87.1 87.7 88.1 88.5 86.7 Local Government Education 47.5 48.3 48.4 49.8 49.9 49.0 49.4 49.0 50.8 51.5

Total 1017.4 1011.5 1008.6 1016.1 1025.3 1035.3 1038.4 1045.1 1038.2 1006.3

Unemployment Rate 3.4 4.0 4.9 5.1 5.1 5.4 5.2 5.0 5.8 9.9

Note: The Cincinnati-Middletown are included Brown, Butler, Clermont, Hamilton and Warren Counties in Ohio; Dearborn, Franklin and Ohio Counties in Indiana; Boone, Bracken, Campbell, Gallatin, Grant, Kenton , and Pendleton Counties in Kentucky.

Source: Ohio Department of Job and Family Services, Bureau of Labor Market Information

250 City of Cincinnati Operating Information Schedule 1 Full Time Equivalent Positions by Function/Program Last Ten Fiscal Years

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Function/Program

General Government 483 478 444 451 582 542 547 497 400 377 Community Development 84 83 77 76 60 56 52 61 140 140 General Services 310 317 296 228 75 72 73 66 61 63 Parks and Recreation 351 343 335 333 310 314 311 311 302 284 Public Safety Police 1,319 1,304 1,312 1,326 1,365 1,322 1,333 1342 1356 1335 Fire 865 855 860 847 860 855 870 885 905 890 Transportation and Engineering 148 148 148 171 168 159 163 151 152 153 Public Services 473 459 456 464 438 437 464 425 416 402 Public Health 496 500 485 492 470 452 451 414 426 421 MSD 632 650 624 595 571 563 559 526 532 587 Enterprise Water Works 578 594 573 592 589 570 569 542 541 561 Parking Facility 64 54 64 58 56 55 51 44 41 42 Convention Center 42 37 39 32 31 29 1 1 General Aviation 12 12 12 13 11 13 13 13 13 14

251 Municipal Golf 2 2 2 2 2 2 2 2 2 2 Stormwater Management 13 9 15 21 15 16 11 12 31 22

5,872 5,845 5,742 5,701 5,603 5,457 5,470 5,292 5,318 5,293

Source: Cincinnati Human Resource Information System City of Cincinnati Operating Information Schedule 2 Operating Indicators by Function/Program Last Ten Fiscal Years

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Function/Program

General Government Litigations Total Cases 149 170 195 207 152 121 342 383 117 106 Open Cases 64 69 43 38 65 83 223 295 79 98

Community Development Housing Units 2,801 3,134 2,098 1,630 2,465 2,110 2,239 2,052 1,581 1,834 Job Created/Retained through Income Tax Credits 2,715 2,200 1,994 1,531 575 570 273 319 65 149 Enterprise Zone Agreement 15 9 5 10 5 1 2 5 0 0

Police Service Calls 300,713 288,283 288,242 295,387 292,826 291,468 303,670 273,652 287,268 275,424 Arrests 60,146 41,829 42,497 47,007 47,830 48,757 47,474 41,510 41,542 36,768 Reports Filed 39,863 45,635 47,639 46,923 44,798 43,427 26,850 24,678 24,743 38,700

Fire Incidences (Fires, EMS) 63,618 64,453 65,428 65,451 65,423 65,206 65,866 67,435 68,973 72,128

Parks Annual Visitors N/A 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 Nature Education Programs N/A 1,500 1,500 1,300 1,300 1,300 1,000 1,000 1,000 1,168

252 Volunteer Hours N/A 30,000 30,000 32,800 33,700 33,700 62,500 87,737 87,737 93,439 Park Reservations N/A 645 660 675 690 690 1,300 1,350 1,350 732 Visitor Center Phone Calls N/A 16,200 17,900 18,000 21,000 21,000 24,600 26,350 26,350 16,848

Health Patients 44,181 43,234 47,712 48,787 46,237 48,961 37,077 34,688 41,674 37,375 Visits 140,935 139,040 135,296 138,833 134,637 137,105 125,971 123,445 119,846 153,548 Inspections 28,077 28,935 29,337 35,098 29,203 26,317 24,312 31,244 17,635 19,751 Birth and Death Certificates 98,618 97,034 94,033 86,938 83,213 84,314 82,876 78,187 68,568 66,990

Sanitation Total solid waste collected and disposed 113,700 117,800 11,500 116,500 114,377 115,000 106,463 103,504 100,045 99,946

Water Works Water Delivered to Water Mains (Gallons) 48,747,763,000 47,047,006,000 49,679,150,000 48,574,063,000 49,005,613,000 50,246,239,000 47,990,075,000 53,410,396,000 49,566,715,000 45,554,623,000 Total Water Consumption (Gallons) 40,630,682,000 39,083,763,000 41,198,056,000 39,700,260,000 41,206,219,000 42,128,497,000 40,061,250,000 44,161,654,000 41,510,868,000 37,844,460,000 Percent of Unmetered Water 17% 17% 17% 18% 16% 16% 17% 17% 16% 17% Average Daily Delivery (Gallons) 133,191,000 128,896,000 136,107,000 133,080,000 134,038,000 137,661,000 131,480,000 146,330,000 135,428,000 124,807,000 Maximum Daily Pumpage (Gallons) 196,730,000 169,636,000 217,882,000 207,864,000 176,763,000 213,827,000 211,468,000 229,517,000 220,566,000 169,260,000 Minimum Daily Pumpage (Gallons) 105,760,000 105,529,000 101,296,000 98,580,000 106,310,000 108,872,000 102,592,000 106,102,000 99,924,000 95,420,000

N/A = Not Available City of Cincinnati Operating Information Schedule 3 Capital Asset and Infrastructure Statistics by Function/Program Last Eight Fiscal Years

Function/Program 2002 2003 2004 2005 2006 2007 2008 2009

Public Safety Police Stations 5 5 5 5 5 5 5 5

Fire Fire Stations 26 26 26 26 26 26 26 26 Paramedic Units 4 4 4 4 4 4 4 6 Life Support Ambulances 6 6 6 6 6 6 6 8 Aircraft Rescue 1 1 1 1 1 1 1 1

Transportation and Engineering Streets (lane miles) 2,820 2,840 2,840 2,840 2,840 2,840 2,840 3,050 Sidewalks (miles) 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 Street Signs 150,000 300,000 300,000 300,000 300,000 300,000 150,000 150,000 Bridges 71 71 66 68 68 63 62 62 Retaining Walls (miles) 48 49 49 51 51 52 52 52

Public Recreation Parks Acreage 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 Regional Parks 5 5 5 5 5 5 5 5 Neighborhood parks 70 70 70 70 70 70 70 70 Preserves and Nature areas 34 34 34 34 34 34 34 34 Nature Education Centers 5 5 5 5 5 5 5 5 Playgrounds 52 52 52 52 52 52 52 52 Hiking Trails (miles) 50 50 50 65 65 65 65 65 Plant Species - Krohn Conservatory 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 Park Facilities & Structures 121 121 121 121 121 121 121 121 Street Trees 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000

Recreation Acreage 2,300 2,300 2,300 2,600 2,600 2,600 2,600 2,600 Recreation and Senior Centers 45 40 40 40 40 38 38 38 Play Areas 108 108 108 108 108 108 108 108 Swimming Pools 41 40 40 40 40 38 38 38 Tennis Courts 122 122 122 122 122 122 122 122

Public Services Traffic Engineering Traffic Signs 705 725 725 739 745 758 749 757 Street Lights 31,500 31,500 31,500 32,000 32,000 32,000 28,706 12,000

Public Health Health Centers 6 6 6 6 6 6 6 6

Water Works Total Assets (in thousands) $ 642,501 $ 759,982 $ 751,109 $ 877,497 $ 877,914 $ 970,706 $ 979,428 $ 1,080,499 Water Customer Accounts 235,556 236,945 238,460 239,630 240,472 241,040 241,416 241,500 Miles of Water Main in the System 2,992 3,012 3,058 3,079 3,102 3,109 3,121 3,128

Municipal Golf Golf Courses 7 7 7 7 7 7 7 7

General Aviation Acreage 1,000 1,000 1,000 1,000 1,000 870 1,353 1,353

Convention Center Meeting Rooms 41 41 N/A 37 37 37 37 Exhibit Space (Square Feet) 162,000 162,000 162,000 162,000 195,000 195,000 195,000 195,000 Meeting/Ballroom Space (Square Feet) 82,000 82,000 82,000 82,000 102,000 102,000 102,000 102,000

Parking Facilities Parking Lots/Garages 9 10 10 15 14 14 14 14 Parking Meters 6,200 6,400 6,400 5,700 5,700 5,400 5,400 5,400

Stormwater Management Miles of Storm Sewers 315 315 315 315 315 350 350 350

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254 Comprehensive Annual Financial Report For the year ended December 31, 2009

Prepared By:

Accounts and Audits

Bea Ebner, Karen Alder, Christopher Bigham, Kim DeWalt, Jeff Harmon, Monica Morton, Bev Nussman, Pam Sacherman, Bryan Schmitt, Linda Weigand, Jessica Young, Carolyn Fehr

Special Acknowledgement for Contributions from:

Water Works Janet Klenk, Andy Remlinger

Retirement Ron Wilson

Treasury Nicole Lee

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